Kohl`s earnings miss sees stock slump

Shares in Kohl´s slumped 9% in pre-market trading after the US department store operator missed earnings expectations.

Rising costs and store closures due to hurricanes saw the struggling group report a 20% third-quarter decline in profit to $117m.

Kohl´s meanwhile reported sluggish revenue, with sales at stores open at least 12 months rising by just 0.1%.

This latter gauge, however, beat analysts´ expectations for a 0.7% decline.

Net sales rose marginally to $4.33bn versus market forecasts of $4.30bn.

Nevertheless, with investors already taking a bearish view of the prospects for traditional US retailers, the shares looked set for a punishing day.

Though the $117m in earnings was only just short of consensus expectations of $120m, Kohl´s acknowledgment that discounting had depressed margins is no doubt weighing on sentiment.

Kolh´s shares have already lost around 31% over the past year, in addition to what appears to be another slump today.

Traditional US retailers in general have come under a lot of pressure this year from more intense competition and increasing online purchases by shoppers.