Kohl's Corporation (NYSE: KSS) reported worse-than-expected third-quarter earnings on Thursday. The results were influenced by higher costs and hurricanes. Shares of the company dropped 6.9% to $37.97 per share after the announcement.
For the third quarter, sales increased to $4.33 billion, which slightly surpassed analysts’ estimate of $4.30 billion. Same-store sales increased 0.1% for the third quarter, while analysts had expected a drop of 0.7%.
Net income was down from $146 million, or $0.83 per share, for the same period last year, to $117 million, or $0.70 per share for the third quarter of 2017. Adjusted earnings per share was $0.70 for the third quarter, missing estimate of $0.72 per share.
“We are pleased to report an increase in comp sales for the quarter as the traffic momentum we saw in the first half of the year continued. We saw strong results during the back-to-school season, achieving a low single-digit positive comp,” Kevin Mansell, the chairman, chief executive officer and president of Kohl's, said in the statement on Thursday.
“The middle of the quarter was soft as we experienced disruptions from the hurricanes and other unseasonal weather. The quarter closed with strong sales in the second half of October,” he said.
The company also said in the statement that by the end of the third quarter, Kohl’s owned 1,156 stores in 49 states, compared with 1,155 stores for the third quarter last year.