The earnings call highlighted strong performance in gross margin management and growth in specific areas like Sephora and pet business. However, it also revealed significant challenges, including declines in net and comparable sales, weather impacts, and increased expenses. Efforts to reposition the company and improve digital strategy are ongoing, but the mixed results indicate balanced achievements alongside setbacks.

Company Guidance

During the Kohl's Q3 2023 earnings call, several key metrics and guidance updates were shared by the executives. Net sales decreased by 5.2%, with comparable sales down 5.5% and digital sales declining 16.5%, primarily due to the elimination of online-only promotions. Despite these setbacks, Kohl's reported a positive gross margin of 38.9%, a 158 basis points increase from the previous year, attributed to lower freight costs and disciplined inventory management, which saw a reduction by 13% at the end of the quarter. The company's store comparable sales were down approximately 1%, yet Sephora at Kohl's contributed positively with beauty sales increasing by more than 70%. For fiscal year 2023, Kohl's adjusted its net sales guidance to a decrease between 2.8% and 4% compared to 2022, while maintaining an operating margin forecast of approximately 4%. Earnings per diluted share are now expected to be between $2.30 and $2.70. The focus remains on strategic priorities such as enhancing customer experience, simplifying value strategies, and strengthening the balance sheet, with an aim to reduce inventory further and manage expenses efficiently.

Gross Margin and Expense Management

Kohl's achieved a gross margin of 38.9% in Q3, an increase of 158 basis points compared to last year, driven by lower freight costs and reduced digital-related costs. Year-to-date gross margin was 39%, up 56 basis points from last year.

Sephora Sales Growth

Comparable beauty sales in Sephora shops opened in 2021 and 2022 increased more than 30% in Q3, with total beauty sales increasing more than 70%, driving additional beauty share gains.

Inventory Reduction

Inventory was reduced by 13% compared to last year, exceeding the goal of a mid-single-digit decline, positioning the company well for the holiday season.

Pet Business Growth

Kohl's pet business sales increased more than 40% in Q3, supported by an expanded in-store space and a broader assortment of products.

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Kohl's (DE:KHP) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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DE:KHP Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Aug 21, 2018	2018 (Q2)	- / 1.71	1.205	41.94% (+0.51)	―	―
Nov 20, 2018	2018 (Q3)	- / 0.95	0.68	40.00% (+0.27)	―	―
Mar 05, 2019	2018 (Q4)	- / 2.18	1.817	19.79% (+0.36)	―	―
May 21, 2019	2019 (Q1)	- / 0.59	0.622	-4.69% (-0.03)	―	―
Aug 20, 2019	2019 (Q2)	- / 1.51	1.71	-11.93% (-0.20)	―	―
Nov 19, 2019	2019 (Q3)	- / 0.72	0.952	-24.49% (-0.23)	―	―
Mar 03, 2020	2019 (Q4)	- / 1.93	2.177	-11.16% (-0.24)	―	―
May 19, 2020	2020 (Q1)	- / -3.11	0.593	-624.59% (-3.70)	―	―
Aug 18, 2020	2020 (Q2)	- / -0.24	1.506	-116.13% (-1.75)	―	―
Nov 17, 2020	2020 (Q3)	- / <0.01	0.719	-98.65% (-0.71)	―	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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DE:KHP Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Nov 26, 2024	€16.50	€13.93	-15.57%
Aug 28, 2024	€16.64	€16.92	+1.63%
May 30, 2024	€22.85	€17.06	-25.36%
Mar 12, 2024	€22.37	€22.41	+0.20%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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