Kohl’s Corp. shares are in the red today after the firm announced disappointing third-quarter profits that it said were hurt by unseasonable weather and two hurricanes.
As of 12:15 p.m. ET, shares remained down 1.6 percent to $40.10.
The department store said its Q3 profits fell 18 percent year-over-year to $117 million, or 70 cents per diluted share, missing analysts’ bets for diluted earnings per share of 72 cents.
Sales edged up 0.1 percent to $4.3 billion, which was in line with forecasts. Comparable sales turned positive during the period, gaining 0.1 percent, compared with last year’s decline of 1.7 percent.
Kohl’s — which pledged to donate $1 million to relief efforts for Hurricane Irma in August and also encouraged employees to take advantage of an internal volunteer program to assist in the aftermath — said it shouldered an additional $8 million in SG&A costs due to Hurricanes Harvey and Irma. (Overall, SG&A expenses increased by $15 million, to $1.1 billion.)
“[While the hurricanes] created a temporary impact in our business operations as it did for most retailers, we made a deliberate decision to absorb some of financial impact as with several additional steps to support our associates, our customers and our communities in the aftermath of the storms,” CFO Bruce Besanko told investors. “We believe this was the right way for our business to respond to these significant natural disasters, and we believe decisions like this will help ensure we maintain our store corporate reputation in the communities we serve.”
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Looking ahead, Kohl’s improved its full-year outlook and now expects fiscal 2017 diluted EPS of $3.72 to $3.92, which includes the impact of a fourth-quarter tax settlement. On an adjusted basis, the company expects diluted EPS of $3.60 to $3.80, compared with its prior guidance of $3.50 to $3.80 per diluted share