Shares of Kohl's Corp. (KSS, Financial) fell more than 6% on Tuesday after reporting first-quarter earnings of 64 cents per share on $4.21 billion in revenue. The company managed to beat revenue expectations by $260 million and earnings estimates by 14 cents.
CEO Michelle Gass said she was pleased with the results.
“We built on our recent momentum and achieved our third consecutive quarter of positive comparable sales, which increased on both a fiscal and a shifted basis. Further, we exceeded the high end of our margin expectations through continued focus on inventory management, while expenses were consistent with our expectations as we continue to make investments to ensure our long-term success.”
Moreover, the retailer's board of directors declared a quarterly cash dividend of 61 cents per share.
Looking ahead, the company expects its adjusted fiscal 2018 diluted earnings per share to be $5.05 to $5.50, compared to its prior guidance of $4.95 to $5.45. Including the loss on extinguishment of debt, diluted earnings for the year are expected to be $4.86 to $5.31 per share.
Shares of Toll Brothers Inc. (TOL, Financial)Ă‚ fell on weak quarterly results. The company reported earnings of 72 cents per share on revenue of $1.6 billion. The company beat revenue expectations by $20 million, but fell 4 cents short of earnings estimates.
The gross margin, as a percentage of revenues, reached 18.8% and the adjusted gross margin was 22.5%.
Moreover, the company increased its dividend to 11 cents per share from 8 cents per share. It also repurchased approximately 1.8 million shares of its common stock at an average price of $45.44 per share for a total purchase price of approximately $81.5 million in the second quarter, bringing the total to approximately 6.2 million shares year to date.Ă‚
The company now expects full fiscal 2018Ă‚ deliveries to be between 8,000 and 8,500 units, with an average price between $830,000 and $860,000.Ă‚
The adjusted gross margin is projected to be between 23.75% and 24.25% of revenues.
Disclosure: The author holds no positions in any stocks mentioned.
