Shares of Kohl's Corp (KSS) are up nearly 4% in early trading, after the company reported first quarter profits of $137 million, or 45 cents per share, down from $153 million, or 49 cents per share, a year earlier.
Revenue budged slightly higher to $3.64 billion, as same-store sales dropped 4.2 percent. The company opened 19 stores during the quarter and now has 1,022 stores in 49 states, compared with 957 stores in 47 states at the same time last year. The Company expects to open an additional 37 stores later this year for a total of 56 stores in fiscal 2009.
Looking ahead, management is raising its full-year per-share profit forecast to $2.19 to $2.42, above its previous expectations for $2.00 to $2.30 per share. The consensus is for $2.55 a share.
The Bottom Line
Shares of KSS are way off of its all-time highs of $76 a share, hit in the spring of 2007. The stock has technical support in the $33-35 price area. If the shares can firm up, we see overhead resistance around the $49-50 price levels. We do not currently rate this non-dividend paying stock, but we do watch the stock closely, as it has appeared recently on our non-dividend stocks to watch.
Kohl's Corp (KSS) does not currently pay an dividend.
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