Kohl’s withdraws annual sales, profit forecasts

Reuters | November 17, 2022

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Market Recap

U.S. equity markets were down sharply before the opening bell on mixed retail reports and continued lackluster guidance during earnings calls. The Dow was down over 300 points and the other indices were done similarly.

In economic news, Initial Jobless Claims were fewer than expected, posting 222K vs 225k forecasted. Building Permits were up 1.526M vs. 1.512 forecasted.

Despite a gloomy start to the trading day, the markets rallied in intraday trading. Both the Dow Jones Industrial Average and the Nasdaq managed to claw their way back into positive territory.

In stocks, Bath & Body Works (BBWI) shot up 25.54% on Earnings per Share that doubled estimates. Macy’s (M) was up 15.04%, and Satixfy Communications (SATX) was up a whopping 69.05%. Kohl’s Corporation (KSS) shares rose 2.85% in intraday trading after it withdrew sales and profit forecasts.

In commodities, WTI Crude Oil dropped down sharply to $82.08 (-3.08%). Natural Gas was up 5.06% at 6.514.

In cryptocurrencies, both Bitcoin (16,660) and Ethereum (1,208) traded flat in intraday trading.

Kohl’s Withdraws Annual Sales, Profit Forecasts

(Reuters) -Kohl’s Corp withdrew its 2022 sales and profit forecasts on Thursday, blaming an uncertain economic outlook and the departure of top boss Michelle Gass.

Shares of the department store chain fell 5% in premarket trading.

Kohl’s has struggled to attract shoppers despite steep discounts to clear excess inventory, as Americans cut back spending on apparel and other discretionary purchases amid decades-high inflation.

The company said it was not planning on repurchasing any more shares until its balance sheet is strengthened.

Its third-quarter comparable sales fell 6.9%, in line with analysts’ estimates, according to Refinitiv IBES data.

Net income fell to $97 million, or 82 cents per share, compared with $243 million, or $1.65 per share, a year earlier.

(Reporting by Deborah Sophia in Bengaluru; Editing by Devika Syamnath)

Thursday Closing Bell, November 17 (4 PM ET)

DJIA 33,547.37 -6.47 (+0.02%)
S&P 500 3,946.86 -11.93  (-0.30%)
NASDAQ 11,144.96  -38.70  (-0.35%)
Russell 2000 1,832.44  -20.61 (-1.11%)
Crude Oil 81.97 -3.64  (-4.26%)
US Dollar Index 106.540  +0.388 (+0.37%)

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