What Happened To Kohl's Stock Today?

Kohl’s Corporation KSS shares traded lower in sympathy with Walmart and Dillard’s after the retailers reported their quarterly financial results.

What Happened: On Tuesday, Walmart WMT and Dillard’s DDS reported earnings for the fourth quarter that failed to impress investors. Walmart ended the day positive after falling in early trading and Dillard's closed down 17%.

WMT Q4 Results: Walmart turned in a favorable report, beating analyst estimates for both earnings and sales. The retail giant reported earnings of $1.71 per share and net sales of $164 billion, surpassing the consensus estimates of $1.51 per share and $159.76 billion respectively.

However, the company provided modest guidance for the first quarter, headlined by adjusted earnings expectations of $1.25-$1.30 per share versus analyst estimates of $1.36 per share. The company cited increased economic uncertainty and rising inflationary pressures as the primary reason for the conservative guidance.

See Also: Walmart Q4 Earnings: 7% Sales Growth, Flat Margins, Dividend Boost And Cautious Outlook

DDS Q4 Results: The multiline retailer reported quarterly earnings of $16.89 per share and full-year 2022 earnings of $50.81 per share. Dillard’s also turned in quarterly net sales of $2.16 billion, slightly beating analyst estimates of $2.15 billion.

However, Dillard’s announced three store closures for the first quarter of 2023. Additionally, the company plans to open a new store during the spring of 2024 in Sioux Falls, South Dakota.

Why It Matters: Kohl’s stock movement reflects growing uncertainty in the retail industry due to increased economic uncertainty and the anticipation of reduced market demand.

Kohl's operates department stores that sell moderately priced private-label and national-brand clothing, shoes, accessories, cosmetics and home furnishings.

According to data from Benzinga Pro, Kohl’s shares closed Tuesday down 9.96% at $29.20. The stock has a 52-week high of $63.74 and a 52-week low of $23.36.

Photo: courtesy of Kohl's.