Kohl's Corporation KSS is likely to register top- and bottom-line declines when it reports second-quarter fiscal 2024 earnings on Aug 28 before the opening bell. The Zacks Consensus Estimate for revenues is pegged at $3.81 billion, suggesting a drop of 2.2% from the prior-year quarter’s reported figure.

The consensus mark for quarterly earnings has moved down 10.9% in the past 30 days to 49 cents per share. This indicates a slump of 5.8% from the year-ago quarter’s reported figure. KSS has a trailing four-quarter negative earnings surprise of 123.2%, on average.

Things To Note

KSS continues to bear the brunt of a challenging macroeconomic environment, as customers face various economic factors, such as high interest rates and inflation. With inflationary pressures affecting disposable income, consumers are more price-sensitive and that might potentially threaten the company's revenue stream. Our model suggests a comparable sales decline of 2.6% for the fiscal second quarter.

Despite these challenges, the firm is benefiting from its partnership with Sephora. The company is also focused on enhancing underdeveloped categories like home goods and impulse purchases. The continuation of such trends is likely to have offered some respite in the to-be-reported quarter.

Kohl's Corporation Price and EPS Surprise

Kohl's Corporation price-eps-surprise | Kohl's Corporation Quote

What the Zacks Model Unveils

Our proven model predicts an earnings beat for Kohl's this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Kohl's carries a Zacks Rank #3 and has an Earnings ESP of +11.18%.

Other Stocks With Favorable Combination

Here are some other companies worth considering, as our model shows that these, too, have the correct combination to beat on earnings this time around.

American Eagle Outfitters AEO currently has an Earnings ESP of +1.97% and a Zacks Rank of 2. The company is likely to register bottom- and top-line growth when it reports second-quarter fiscal 2024 results. The consensus mark for AEO’s quarterly revenues is pegged at $1.3 billion, indicating an 8.7% rise from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus mark for AEO’s quarterly earnings has moved up a penny in the past seven days to 38 cents. The consensus estimate indicates growth of 52% from the year-ago quarter’s actual.

Costco Wholesale Corporation COST currently has an Earnings ESP of +0.89% and a Zacks Rank of 3. The company is expected to register top- and bottom-line growth when it reports fourth-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for COST’s quarterly revenues is pegged at $80.1 billion, suggesting growth of 1.4% from the year-ago quarter’s reported figure. 
The consensus estimate for Costco’s earnings has remained unchanged in the past 30 days at $5.02. The consensus mark for earnings indicates growth of 3.3% from the year-ago quarter’s reported figure. COST delivered an earnings beat of 2.3%, on average, in the trailing four quarters.

Burlington Stores BURL has an Earnings ESP of +6.24% and a Zacks Rank of 3 at present. BURL is expected to register top- and bottom-line growth when it reports second-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for its quarterly earnings has increased by a penny in the past 30 days to 94 cents. The consensus mark for earnings indicates a 56.7% surge from the figure reported in the year-ago quarter.

The consensus estimate for quarterly revenues is pegged at $2.41 billion, calling for a rise of 11% from the top line reported in the year-ago quarter. BURL delivered a trailing four-quarter average earnings surprise of 21.7%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Kohl's Corporation (KSS) : Free Stock Analysis Report

American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report

Costco Wholesale Corporation (COST) : Free Stock Analysis Report

Burlington Stores, Inc. (BURL) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research