Goldman Sachs Comments On Kohl's 1Q EPS

According to Goldman Sachs, Kohl's KSS reported 1Q EPS of $0.73, in line with GS, consensus and management guidance. Goldman Sachs said that EBIT was light of the estimates, as lower than expected gross margin and SG&A were partly offset by lower depreciation. “Below the EBIT line, a better tax rate benefitted the quarter. Management raised FY11 EPS guidance to $4.25-4.40 from $4.05-4.25 vs. GS/consensus at $4.39/$4.36. It is important to note that guidance now includes buyback through the end of 2Q, whereas prior guidance excluded it. Management also issued 2Q EPS guidance of $0.96-1.02 vs. GS/cons at $1.02/$1.00. Our estimates and price target are unchanged.” Kohl's closed yesterday at $53.61.