The retailer’s reduced its same-store sales outlook
The shares of Kohl’s Corporation (NYSE:KSS) are 12.2% lower at $21.82, after the retailer reported a bigger-than-expected drop in sales for the third quarter, as shoppers were pressured by high inflation. Same-store sales were lower too, also coming in well below forecasts and leading Kohl’s to lower its full year same-store sales outlook to the low end.
Bearish options traders are targeting KSS after the news, with 11,000 puts crossing the tape so far — nine times the intraday average amount — while 9,700 calls have also exchanged hands. The weekly 11/24 20-strike put is the most popular contract, followed by the 24.50-strike put from the same series.
Now on the short sale restricted (SSR) list, short interest is up 8% over the last two reporting periods. Still, the 25.73 million shares sold short represent 23.7% of Kohl’s stock’s available float.
On the charts, KSS’ 60-day moving average is keeping today’s pullback in check, though its still pacing for its biggest single-day percentage loss since July 2022. While the equity is up 7.8% this quarter, it’s now down down 10.5% year to date.
Image and article originally from www.schaeffersresearch.com. Read the original article here.