Kohl’s stock rallies after swinging to narrower than expected adjusted loss, as sales fell less than forecast

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Shares of Kohl’s Corp. rallied 4.5% in premarket trading Tuesday, after the retailer swung to a narrower-than-expected adjusted second-quarter loss, as revenue fell less than forecast. The company didn’t report same-store sales, given store closures resulting from the COVID-19 pandemic. Net income for the quarter to Aug. 1 fell to $47 million, or 30 cents a share, from $241 million, or $1.51 a share, in the year-ago period. Excluding non-recurring items, such as gains on real estate sales, the adjusted loss per share was 25 cents, compared with the FactSet consensus for a loss of 88 cents a share. Total revenue dropped 23.1% to $3.41 billion, but beat the FactSet consensus of $3.09 billion. “As we look ahead, we are planning for the crisis to continue to impact our business in the near-term,” said Chief Executive Michelle Gass. “We are well-positioned to capitalize on evolving customer behaviors and the retail industry disruption, which we believe will drive long-term growth and increased market share.” The stock has plunged 54.0% year to date through Monday, while the SPDR S&P Retail ETF has advanced 14.6% and the S&P 500 has gained 4.7%.
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