Kohl’s (NYSE:KSS) shares tumbled Thursday, despite the company reporting fiscal-quarter quarter profit and sales that exceeded expectations and hiking its full-year forecast.
It followed a similar trend with Target (NYSE:TGT) and Lowe’s (NYSE:LOW), both of which reported strong earnings results a day before, and watched their respective stocks lose momentum throughout the day. Some investors are cautious about the fervent demand coming out of the pandemic sticking, especially as stimulus checks are spent.
Macy’s (NYSE:M) stock similarly spiked on upbeat results released Tuesday, and signs of shoppers returning to stores to splurge on dresses and luggage, but closed the day down.
On a two-year basis, GlobalData Retail Managing Director Neil Saunders pointed out, the results from Kohl’s are not as strong, either. Sales are still down about 10% from 2019 levels, he noted.
"Good growth was always inevitable given the terrible results of last year," Saunders said about Kohl’s lapping a period when its stores were forced shut during the COVID health crisis. "While the company is on a steep recovery trajectory, it has not fully dug itself out of the hole that the pandemic created."
Kohl’s net income climbed to $14 million, or nine cents per share, from a loss of $541 million, or $3.52 per share, a year earlier. Excluding one-time adjustments, the company earned $1.05 per share, outpacing expectations for four cents.
Revenue soared nearly 70% to $3.89 billion from $2.43 billion a year earlier. That beat expectations for $3.48 billion.
The company said its store sales more than doubled during the quarter, while digital sales rose 14% year over year. It didn’t break out same-store sales figures.
KSS shares plummeted $7.30, or 12.1%, to $52.95.
