Kohl’s stock drops after earnings beat expectations but full-year outlook withdrawn

Shares of Kohl’s Corp.
KSS,
-7.08%
dropped 4.0% in premarket trading Thursday, after the department store chain reported fiscal third-quarter profit and revenue above expectations, but withdrew its full-year outlook citing “significant” macroeconomic headwinds and the unexpected transition of its chief executive officer. Net income for the quarter to Oct. 29 fell to $97 million, or 82 cents a share, from $243 million, or $1.65 a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of 82 cents topped the FactSet consensus of 77 cents. Revenue declined 7.0% to $4.28 billion but was above the FactSet consensus of $4.07 billion. Same-store sales decreased 6.9%, beat expectations of a 7.0% decline. The company said it has formed a committee to search for a new CEO, after Michelle Gass stepped down last week to join Levi Strauss & Co.
LEVI,
-4.21%,
and Tom Kingsbury was appointed interim CEO. The stock has dropped 12.2% over the past three months through Wednesday, while the S&P 500
SPX,
-0.83%
has declined 7.4%.