Before Thursday’s opening bell, retailer Kohl’s (KSS) released its fourth quarter financial results. Here’s what the results mean for mutual fund investors.
Inside KSS’s Earnings
Earnings
The company reported net income of $369 million, or $1.83 per share, up from $334 million, or $1.56 per share, a year ago. Analysts expected to see EPS of $1.80.
Revenue
Revenue for the quarter increased to $6.34 billion from $6.10 billion. Analysts expected to see revenue of $6.33 billion.
Outlook
Looking ahead, KSS expects to see FY2015 EPS between $4.40 and $4.60. Analysts expect to see EPS of $4.54.
Impressive Holiday Sales
Being a middle market retailer, Kohl’s has struggled to compete with higher-end competitors like Macy’s (M) as well as lower-end retailers like Wal-Mart (WMT). With competition and low consumer spending, the retailer has been faced with declines in store traffic. Despite its challenges, Kohl’s reported better-than-expected sales for the holiday season.
Kohl’s also announced that it has boosted its dividend by 15%, which has raised its yield to about 2.5%.
For FY2015, the company expects sales to grow by 1.8%-2.8%, which is in-line with analysts’ view of 2% growth.
Mutual Funds to Watch
Investors interested in KSS may consider a mutual fund as an alternative to owning the individual stock. The funds below currently hold the largest stakes in KSS.
| Symbol | Mutual Fund | Stake |
|---|---|---|
| PRFDX | T. Rowe Price Equity Income | 2.72% |
| VTSMX | Vanguard Total Stock Mkt Idx | 2.12% |
| ACSTX | Invesco Comstock | 1.57% |
The Bottom Line
The funds listed above allow investors to gain exposure to KSS while remaining diversified. Investors interested in KSS may also be interested in Macys (M) or Target (TGT).