Kohl's Shares Rise After Earnings Beat, Dividend Raised

By Tonya Garcia Markets MarketWatch Pulse

Kohl's Corp. shares rose 3.2% in Thursday premarket trading after the retailer announced fourth-quarter earnings that beat expectations and raised its dividend. Net income was $252.0 million, or $1.44 per share, down from $296.0 million, or $1.58 per share, last year. The FactSet consensus was $1.33. Sales were $6.2 billion, down from $6.4 billion last year but meeting the FactSet consensus. The sales slide was attributed to "declines in brick-and-mortar traffic, and offset somewhat by strength in online demand," said Chief Executive Kevin Mansell in a statement. Same-store sales declined 2.2%, while the FactSet consensus was for a 2.1% decline. Kohl's quarterly dividend of 55 cents per share is 10% higher year-over-year and payable March 22, 2017 to shareholders of record at the close of business on March 8, 2017. Kohl's expects fiscal 2017 EPS of $3.50 to $3.80. The FactSet consensus is $3.66. The company expects a sales change between down 1.3% and up 0.7%. And same-store sales are expected to range from 2% decline to flat. Kohl's shares are down 7% for the past year while the S&P 500 index is up 23% for the same period.

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