The chart below shows how KSS performed 10 days before and after its earnings report, based on data from the past quarters. Typically, KSS sees a +6.24% change in stock price 10 days leading up to the earnings, and a -0.56% change 10 days following the report. On the earnings day itself, the stock moves by -4.65%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
New CEO Appointment: Kohl's has appointed Ashley Buchanan as CEO effective January 15, 2025, bringing extensive retail experience to drive future growth.
Gross Margin Improvement: The company reported a gross margin of 39.1%, an increase of 20 basis points compared to last year, driven by effective inventory management and lower freight expenses.
Sephora Sales Surge: Kohl's has seen a significant increase in its Sephora sales, with total beauty sales increasing by 15% and comparable beauty sales up 9% in Q3.
New Store Launches: The company has successfully launched its Babies 'R' Us shops in 200 locations, enhancing its product offerings and customer engagement.
Dividend Distribution Commitment: Kohl's has distributed $55 million in dividends to shareholders in Q3, reflecting its commitment to returning value to investors.
Negative
Sales Decline Analysis: Net sales decreased 8.8% in Q3 and are down 6.1% year-to-date.
Sales Decline Analysis: Comparable sales declined 9.3% in Q3 and decreased 6.4% year-to-date.
Transaction Trends Analysis: In Q3, transactions were down while conversion improved, and our average basket sizes remain lower compared to last year.
Sales Performance Analysis: Digital sales outperformed store sales in the quarter, but both were down compared to last year.
Inventory Reduction Analysis: We ended Q3 with inventory down 3% compared to last year, with on-hand inventory down 7% at the end of the quarter.
Kohl's Corporation (KSS) Q3 2024 Earnings Call Transcript
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