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Kohl’s reported a surprise profit in its fiscal first quarter. (Photo by Justin Sullivan/Getty Images)
Kohl’s
stock was rising sharply Wednesday after the retailer reported a surprise profit in its fiscal first quarter.
Kohl’s
(ticker: KSS) posted earnings of 13 cents a share. Analysts were calling for a loss of 43 cents. A year earlier, Kohl’s reported earnings of 11 cents a share.
Net sales in the quarter fell 3.3% from last year to $3.36 billion, slightly below analysts’ predictions of $3.42 billion. Comparable-store sales slid 4.3% but less than the 4.5% decline that Wall Street had forecast. Gross margins rose to 39% from 38.3% a year earlier, while both expenses and inventory declined in the first quarter.
“While there is still work to be done and the macroeconomic environment remains challenging, we are affirming our 2023 guidance and continue to have conviction in Kohl’s longer term opportunity,” said CEO Tom Kingsbury in a press release.
Shares of Kohl’s were rising 11% to $21.43 in premarket trading Wednesday.
Write to Emily Dattilo at emily.dattilo@dowjones.com