Kohl's Shares Drop As Sales Miss Overshadows Profit Beat

Kohl's Corp.'s stock dropped 4.7% in premarket trade Thursday, after the discount department store chain missed sales expectations, offsetting a profit beat. For the quarter ended May 2, earnings edged up to $127 million, or 63 cents a share, from $125 million, or 60 cents a share, in the same period a year ago. That was above the FactSet consensus for earnings per share of 55 cents. Sales rose to $4.12 billion from $4.07 billion, as same-store sales increased 1.4%, both missing the FactSet consensus of $4.19 billion and 2.5% growth, respectively. "Sales were modestly below our original expectations for the quarter, but accelerated in the March/April combined period after a weak February," said Chief Executive Kevin Mansell. The stock has run up 22% year to date through Wednesday, while the S&P 500 has gained 1.9%.