Kohl’s Q2 Earnings Report: Retailer Looks To Amazon, Planet Fitness, Fanatics To Boost Sales

Kohl’s (KSS) has released its earnings report for the second quarter of 2019, showing slumping sales that were up over the first quarter of 2019 based on back-to-school revenue.

The company came up short on analyst expectations for net sales reporting $4.17 billion compared to analyst estimates of $4.2 billion, CNBC reported. Kohl’s also had a poor showing for same-store sales, which were down 2.9 percent versus analyst expectations of 2.5 percent, the news outlet said.

The retailer reported diluted earnings per share of $1.51 compared to analyst estimates of $1.53 per share, according to CNBC. The company also declared a cash dividend of $0.67 per share that will be payable on Sept. 25.

As Kohl’s looks to increase its sales, it expanded its venture with Amazon to now include returns for the e-commerce retailer at all of its stores as it looks to increase foot traffic. Kohl’s has also partnered with Fanatics to sell licensed merchandise online and has been leasing out space next to its stores to Planet Fitness, also to gain more customers.

"We are pleased to report that our business strengthened as we progressed through the second quarter,” Michelle Gass, Kohl's CEO said. “Comparable sales were better than the first quarter and improved during the period, turning positive during the last six weeks of the second quarter with 1% growth.

“This positive trend has continued into August driven by a successful start to the back-to-school season. We are confident that our upcoming brand launches, program expansions, and increased traffic from the Amazon returns program will incrementally contribute to our performance during the balance of the year and beyond.”

Kohl’s adjusted its diluted share guidance for 2019 to $5.45. This is an increase over the $5.15 per diluted share it previously suggested.

Shares of Kohl's stock were down 5.46 percent as of 11:44 p.m. ET on Tuesday.