The company’s shares had advanced briefly in early-morning trading on the heels of the results, but those gains were reversed following Macy’s Inc.’s Q2 release. Although Macy’s also topped expectations, spooked investors — who have grown weary of D-store challenges — may have expected a stronger beat and a raised a guidance from the firm. As a result, a number of retail stocks were punished throughout the trading day. (Macy’s reaffirmed its guidance.)
For the quarter ended July 29, the department-store chain said its net income gained 49 percent year-over-year, to $208 million, or $1.24 per diluted share, topping analysts’ forecasts for diluted earnings per share of $1.19.
Meanwhile, sales gained close to 1 percent to $4.1 billion, which was in line with forecasts for revenues of $4.1 billion.
“The results of the quarter and the year continue to reinforce to us that our goal, to be a best-in-class omnichannel retailer, is the right path for success,” CEO Kevin Mansell told investors during a conference call. “Our two priorities remain the same, and all areas of the company are focused on them: driving traffic and operational excellence.”
Mansell noted that Under Armour — which added Kohl’s to its distribution network in Q1 — continued “a very strong performance and beat the sales plan across almost all categories.”
“We’ve gained significant market share in active apparel and footwear in the first half of the year and expect that to continue in the back half, based on assortment improvements and our momentum,” Mansell added.
As of 3:30 p.m. ET, Kohl’s shares remained down nearly 6 percent to $39.42.