Kohl’s, JC Penney report first-quarter 2019 earnings

Kohl’s, JC Penney report first-quarter 2019 earnings

Kohl’s and JC Penney both delivered disappointing first-quarter earnings reports Tuesday morning, putting a damper on other department stores, as their stocks tumbled.

Shares of Kohl’s and Penney were both down more than 10% in premarket trading, as Macy‘s stock was down a little more than 1%, and Nordstrom‘s stock dropped 1.7%.

Kohl’s missed earnings expectations and slashed its outlook for the full year. The retailer also for the first time in two years missed same-store sales expectations, as its tie-up with Amazon and emphasis on athletic apparel weren’t enough to get shoppers into stores. CEO Michelle Gass said the year “started off slower than we’d like.”

Penney, meanwhile, missed Wall Street’s earnings and same-store sales estimates. The company attributed a drop in sales to its decision in February to halt selling appliances in stores. CEO Jill Soltau said the company is “working to reestablish the fundamentals of retail” at Penney.

Kohl’s reported adjusted earnings of 61 cents a share on sales of $4.09 billion. Analysts were calling for earnings per share of 68 cents on revenue of $3.94 billion, based on Refinitiv data.

Sales at Kohl’s stores open for at least 12 months fell 3.4%, while analysts were calling for a drop of just 0.2%.

Kohl’s said it now expects adjusted earnings per share to fall within a range of $5.15 to $5.45, compared to a prior range of $5.80 to $6.15. Analysts had been calling for earnings of $6.04 per share.

Penney reported a net loss of 46 cents on sales of $2.56 million. Analysts were calling for a net loss of 38 cents on sales of $2.56 million.

Penney’s same-store sales dropped 5.5%, worse than an expected drop of 4.2%.

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