Courtesy of Benzinga.
Kohl’s (NYSE: KSS) has jumped to a six-month high after posting strong first-quarter results.
The Menomonee Falls, Wisconsin-based firm’s EPS rose 4.8 percent to $0.66, easily topping the $0.58 Wall Street consensus.
Revenue dropped one percent year-over-year to $4.19 billion and fell just short of the $4.29 billion analysts expected.
Running Forward
The company opened nine new stores during the first quarter. It now has 1,155 locations in 49 states.
In the fall, it plans to open an additional three stores and remodel 30.
North Dallas 400
On April 16, The Dallas Morning News reported Kohl’s has signed a letter of intent to lease two empty office buildings north of Dallas. According to the story, the company will relocate hundreds of workers to the site. It does not plan to use the buildings for its corporate headquarters, per the report.
This comes after the clothing retailer began construction on a 951,000 square-foot warehouse in the Dallas area in 2012, which is expected to employ about 400 workers, as noted in the piece.
The move is not surprising, as countless businesses and residents have flocked to The Lonestar State in the 21st Century, given its top-ranked business climate.
Chip on its Shirt
On April 29, the company announced the opening of a new IT office in Silicon Valley, which will certainly allow it to tap into the high level of tech talent in the area.
The office will initially host over 30 employees who will support online sales growth, process automation and the replatforming of its website. The site, which has experienced three straight years of over 40 percent annual growth, reached $1.4 billion in sales in 2012.
Clothes Don’t Match (the Sales Price)
On May 6, the Santa Cruz Sentinel reported Kohl’s agreed to pay $409,500 in civil penalties following a three-year investigation into its business practices by the district attorneys of Fresno, Sacramento, Santa Clara and Santa Cruz, California. The investigation involved sales prices that did not always register in its scanning system. In other words, some customers may have overpaid for their items.
Cushy Dividend
On Tuesday, the department chain declared a dividend of $0.35 per share of common stock. It will be paid on June 26 to shareholders of record at the close of business on June 12.
Guidance a Little Snug
Kohl’s expects second-quarter earnings to fall within the $1 to $1.08 per share range. At the middle-ground of $1.04, it would narrowly miss the current consensus of $1.05.
Dressed for Success
Despite its so-so guidance, Kohl’s has soared to a six-month high of nearly $53 on word of its successful first quarter. The stock is up over six percent on Wednesday.
