The Dividend Daily

Department store operator Kohl’s Corporation (KSS) said Thursday that its third quarter profit rose 21% from last year, helped by higher sales and better inventory controls.

The Menomonee Falls, Wisconsin-based company reported third quarter net income of $193 million, or 63 cents per share, compared with $160 million, or 52 cents per share, in the year-ago period. Sales rose 6.5% from last year, to $4.1 billion.

On average, Wall Street analysts expected a lower profit of 61 cents per share, on smaller sales of $4 billion.

Kohl’s also said that same-store sales, or sales at stores open at least one year, rose 2.4% in the quarter.

Looking ahead, the company predicted fourth quarter sales to rise 3% to 6%, with same-store sales falling 1% to rising 2%. It also forecast fourth quarter earnings of $1.14 to $1.24 per share, which would fall short of analyst estimates for $1.25 per share.

Kohl’s shares were mostly flat in premarket trading Thursday.

The Bottom Line
Shares of KSS are off 52-week highs of $60 a share. The stock has technical support in the $50 price area. If the shares can firm up, we see overhead resistance around the $57-$60 price levels. We do not currently rate this non-dividend paying stock, but we do follow the company closely.

Kohl’s Corporation (KSS) does not currently pay a dividend.

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