Kohl’s Corporation (NYSE:KSS) shares traded lower in sympathy with Walmart and Dillard’s after the retailers reported their quarterly financial results.
What Happened: On Tuesday, Walmart (NYSE:WMT) and Dillard’s (NYSE:DDS) reported earnings for the fourth quarter that failed to impress investors. Walmart ended the day positive after falling in early trading and Dillard’s closed down 17%.
WMT Q4 Results: Walmart turned in a favorable report, beating analyst estimates for both earnings and sales. The retail giant reported earnings of $1.71 per share and net sales of $164 billion, surpassing the consensus estimates of $1.51 per share and $159.76 billion respectively.
However, the company provided modest guidance for the first quarter, headlined by adjusted earnings expectations of $1.25-$1.30 per share versus analyst estimates of $1.36 per share. The company cited increased economic uncertainty and rising inflationary pressures as the primary reason for the conservative guidance.
See Also: Walmart Q4 Earnings: 7% Sales Growth, Flat Margins, Dividend Boost And Cautious Outlook
DDS Q4 Results: The multiline retailer reported quarterly earnings of $16.89 per share and full-year 2022 earnings of $50.81 per share. Dillard’s also turned in quarterly net sales of $2.16 billion, slightly beating analyst estimates of $2.15 billion.
However, Dillard’s announced three store closures for the first quarter of 2023. Additionally, the company plans to open a new store during the spring of 2024 in Sioux Falls, South Dakota.
Why It Matters: Kohl’s stock movement reflects growing uncertainty in the retail industry due to increased economic uncertainty and the anticipation of reduced market demand.
Kohl’s operates department stores that sell moderately priced private-label and national-brand clothing, shoes, accessories, cosmetics and home furnishings.
According to data from Benzinga Pro, Kohl’s shares closed Tuesday down 9.96% at $29.20. The stock has a 52-week high of $63.74 and a 52-week low of $23.36.
Photo: courtesy of Kohl’s.
