May 14, 2015 / 11:42 AM / 3 years ago

UPDATE 3-Kohl's same-store sales nipped by cold February, shares fall

* Q1 same-store sales rise 1.4 pct vs 2.6 pct est

* Revenue misses Street expectations; profit beats

* Shares fall as much as 11.7 pct (Adds analyst comments and graphic, update shares)

By Sruthi Ramakrishnan

May 14 (Reuters) - Department store operator Kohl’s Corp reported quarterly same-store sales that missed analysts expectation, hurt by colder-than-usual weather in February.

Shares of the company, which also reported lower-than-expected revenue, fell 11.7 percent to $65.80 on Thursday. They had gained 22.1 percent this year to Wednesday’s close, outperforming the S&P 500 Index’s 1.9 percent rise.

The stock’s multiple is likely to reset lower until the company can demonstrate sustainable 2-3 percent same-store sales growth, Baird Equity Research analyst Mark Altschwager wrote in a note.

Kohl’s backed its full-year same-store sales forecast of 1.5-2.5 percent growth.

The company’s same-store sales rose 1.4 percent in the first quarter ended May 2, but widely missed analysts expectation of a 2.6 percent rise, according to research firm Consensus Metrix.

Kohl’s reported a 3.4 percent decline in same-store sales in the year-earlier quarter.

Analysts had heightened expectations for same-store sales in the latest quarter as a nationwide roll out of Kohl’s loyalty program, upgraded beauty departments and more online and TV advertising were seen boosting results.

“Weather, port issues, and weak consumer spending overall is the department store theme in 1Q - despite a plan to recover traffic, it does not appear that KSS escaped the trend,” Evercore ISI analyst Matt McGinley wrote in a note.

Rival Macy’s Inc said on Wednesday that first-quarter profit and sales were hurt by fewer customer visits due to unusually cold weather in February, disruptions at West Coast ports and lower foreign tourist spending in the United States.

Still, some analysts said Kohl’s second-quarter sales would be better.

“We are seeing momentum and traffic in Kohl’s that we haven’t seen there in years, and that’s encouraging,” said Jessica Bornn, an analyst at Merchant Forecast. The research firm conducts channel checks at mall-based retailers.

Kohl’s net income rose to $127 million, or 63 cents per share, from $125 million, or 60 cents per share, a year earlier.

Net sales rose 1.3 percent to $4.12 billion.

Analysts on average had expected earnings of 55 cents per share on revenue of $4.19 billion, according to Thomson Reuters I/B/E/S.

The company’s shares were down 11.3 percent at $66.10 in late morning trade. (Reporting by Sruthi Ramakrishnan in Bengaluru; Editing by Savio D‘Souza and Sriraj Kalluvila)

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