Why Kohl's (KSS) Shares Are Jumping Today - Kohl's (NYSE:KSS)

Kohl's Corp KSS reported a first-quarter FY23 sales decline of 4% year-on-year to $3.57 billion, beating the consensus of $3.34 billion. Q1 comparable sales decreased 4.3% versus last year.
Gross margin for the quarter expanded by 67 basis points to 39%. Operating income for the quarter was $98 million versus $82 million last year. The operating margin expanded 55 basis points to 2.8%.
Selling, general and administrative expenses decreased 4.2% Y/Y to $1.2 billion.
EPS of $0.13 beat the consensus of $(0.42).
Inventory at the end of Q1 was $3.5 billion, a 6% decrease Y/Y.
Kohl's held $286 million in cash and equivalents as of Apr. 29, 2023. Operating cash flow was negative $(202) million in the quarter.
On May 10, 2023, Kohl's Board declared a quarterly cash dividend of $0.50 per share, payable Jun. 21, 2022, to shareholders of record on Jun. 7, 2023.
"While there is still work to be done and the macroeconomic environment remains challenging, we are affirming our 2023 guidance and continue to have conviction in Kohl's longer term opportunity," said CEO Tom Kingsbury.
Outlook, affirmed: Kohl's sees FY23 net sales to decline 2% - 4%. It expects FY23 EPS, excluding any non-recurring charges, of $2.10 - $2.70 versus the Street view of $2.32.
It sees $600 million to $650 million capital expenditure, including expansion of its Sephora partnership and store refresh activity.
Price Action: KSS shares are trading higher by 11.88% at $21.56 in premarket on the last check Wednesday.

Why Kohl's Shares Are Jumping Today