MENOMONEE FALLS, Wisconsin — Kohl's said Thursday that it had a strong back-to-school season, helping the department store operator post better-than-expected results for the third quarter.
Shares of Kohl's Corp. rose more than 5 percent in afternoon trading Thursday.
Stocks of most department store operators, including Kohl's, fell Wednesday after Macy's reported falling sales and said it may have to discount its good further to sell excess inventory. Analysts at Citi Research said Kohl's inventory is "high" too, going into the important holiday season. Kohl's said that the value of its inventories rose nearly 6 percent from a year ago.
The Menomonee Falls, Wisconsin-based company reported fiscal third-quarter net income of $120 million, or 63 cents per share, compared with net income of $142 million, or 70 cents per share, in the same period a year before.
Earnings, adjusted to extinguish debt, came to 75 cents per share. The results beat Wall Street expectations. The average estimate of 10 analysts surveyed by Zacks Investment Research was for earnings of 69 cents per share.
Revenue rise 1.2 percent to $4.43 billion in the period, also beating Street forecasts. Five analysts surveyed by Zacks expected $4.41 billion.
Shares of Kohl's rose $2.63, or 6.1 percent, to $45.79 in afternoon trading Thursday. Its shares are down 29 percent since the beginning of the year as of Wednesday's closing price of $43.16.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on KSS at http://www.zacks.com/ap/KSS
Keywords: Kohl's, Earnings Report