4Q24 Revenue: $5.39B, -9.6% YoY, beat estimates by $210M
4Q24 Non-GAAP EPS: $0.95 beat estimates by $0.21
4Q24 Dividend: Kohl’s declared $0.125/share quarterly dividend, -75% decrease from prior dividend of $0.50; Forward yield 4.15%; Payable April 2; for shareholders of record March 21; ex-div March 21.
FY25 Guidance: Expect net sales growth to decrease betweek 5% to 7%, vs consensus of a decrease of 1.35%; Expect adjusted EPS to be between $0.10 to $0.60, vs consensus of $1.26; Expect comparable sales growth to between 4% to 6%, vs consensus of a decrease of 0.55%; expects operating margin rate to be between 2.20% to 2.60%; Expect capital expenditure to be between $400M to $425M.
Comment: Kohl’s delivered stronger-than-expected results but issued cautious guidance. As the retailer heads into the new year, management is prioritizing three key areas: enhancing the in-store experience, strengthening its value proposition, and refining its product assortment. This marks the first major turnaround initiative under CEO Tom Buchanan, who took the helm in January. Overall, Kohl’s stores remain healthy and profitable, though the company faces a wave of lease renewals in the coming years—an opportunity to reassess its footprint. Meanwhile, like many retailers, Kohl’s is bracing for a challenging 2025. Declining consumer confidence, President Donald Trump’s tariff policies, and weaker-than-expected job growth have heightened recession concerns, posing additional headwinds for sales. 1Q25recommended trading range: $7 to $10. Negative Outlook.
1Q25 Revenue: $1.07B, +3.3% YoY, beat estimates by $20M
1Q25 Non-GAAP EPS: $0.64, beat estimates by $0.23
2Q25 Guidance: Expect revenue in a range of $1.05bn to $1.13bn, vs consensus of $1.08bn.
Comment: Ciena Corp delivered strong results, driven by balanced growth and solid momentum across its customer segments. Management remains optimistic about the company’s positioning amid global investments in network infrastructure to support cloud and AI expansion, anticipating sustained growth in bandwidth demand. Ciena is also confident in achieving revenue growth toward the high end of its 8% to 11% guidance range for FY25. Additionally, with major tech companies increasing capital expenditures on AI, demand for AI-related infrastructure services is expected to benefit from this heightened investment. However, management acknowledges potential challenges, including economic disruptions and the risk of additional tariffs and retaliatory measures in the U.S. and international markets. 2Q25recommended trading range: $54 to $74. Neutral Outlook.
4Q24 Revenue: $3.89B, +0.3% YoY, beat estimates by $120M
4Q24 Non-GAAP EPS: $3.62 beat estimates by $0.11
FY25 Guidance: Expect comparable sales growth to be between 1.0% to 3.0%, midpoint of 2.0% below consensus of 2.57%; Expect GAAP EPS to be between $13.80 to $14.40; Expect net sales to be between $13.6bn to $13.9bn, midpoint of $13.75 below consensus of $13.89.
Comment: DICK’S Sporting Goods delivered strong results, but its FY25 guidance came in below consensus. The company posted its best holiday quarter on record, with comparable sales surging 6.4%—well above the 2.9% growth expected by the market. However, like many retailers, DICK’S provided a cautious outlook for FY25, anticipating a challenging year as consumers navigate tariffs, inflation, and recession concerns. While management remains confident in its customer base, the conservative guidance reflects broader economic uncertainty. The company also noted that its sourcing exposure to China, Mexico, and Canada is minimal but acknowledged that declining consumer confidence could weigh on spending. 1Q25recommended trading range: $180 to $220. Neutral Outlook.
