Shares of Kohl’s (NYSE:KSS) have been alternating between gains and losses today after it reported earnings for its fourth quarter of Fiscal Year 2022. Adjusted earnings per share came in at -$2.49, which missed analysts’ consensus estimate of $0.96 per share. Sales decreased by 7.4% year-over-year, with revenue hitting $6.02 billion. This was $10 million below expectations.
The dismal performance can be attributed to discounts that the company was forced to implement as inflation costs eroded people’s purchasing power. In addition, Kohl’s has received criticism for being messy and unappealing during the holiday shopping season by industry analysts such as Neil Saunders of GlobalData Retail.
Looking forward, management now expects revenue growth and adjusted EPS for Fiscal Year 2023 to be in the ranges of -2% to -4% and $2.10 to $2.70, respectively. For reference, analysts were expecting 0.72% in revenue growth and an EPS figure of $3.20.
Overall, Wall Street analysts have a consensus price target of $30.80 on KSS stock, implying over 12% upside potential, as indicated by the graphic above.
