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Will Kohl’s Q1 Results Help Its Stock Rebound?

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May. 20 2019, Published 7:53 a.m. ET

YTD movement

Kohl’s (KSS) stock was down 4.1% to $63.60 on a year-to-date basis as of May 17. Stocks of peers Macy’s (M) and Nordstrom (JWN) are also in the red and were down 26.9% and 20.4%, respectively, as of May 17.

Kohl’s is set to announce its results for the first quarter of fiscal 2019 on May 21. Analysts expect Kohl’s EPS to grow 6.3% to $0.68 despite a 2.3% estimated decline in net sales in the fiscal first quarter. Softness in February sales is expected to put pressure on the company’s first-quarter results.

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Kohl’s stock rose 11.9% on April 23 as the company expanded its partnership with Amazon (AMZN) and agreed to accept product returns from Amazon customers in over 1,150 stores effective in July. In March, Kohl’s announced that it would sell Amazon products in over 200 stores. Aside from its strategic deal with Amazon, Kohl’s has also entered into a partnership with other entities (like WW and Planet Fitness) to boost customer traffic at its stores.

Despite the significant rise in Kohl’s stock price on news of the expansion of its Amazon partnership, the stock is still in the red on a YTD basis due to concerns about the department store sector, uncertain macro conditions, and the US-China trade war.

Analysts’ recommendations

Kohl’s stock was rated a “buy” by ten analysts, while nine analysts had a “hold” recommendation as of May 17. The stock was rated a “sell” by one analyst.

As of May 17, the 12-month price target for Kohl’s stock was $75.56, which reflects an upside of 19%. However, this price target is likely to be revised depending on the company’s first-quarter results and any revision to its outlook.

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