Kohl’s – A Lesson in Value

Kohl’s reported earnings today, that beat so-called expectations. Wal-Mart reported yesterday, also better than expected numbers. Kohl’s third quarter earnings were up 21% versus the same period of 2008. However, 2008’s third quarter was a down quarter. Therefore, the increase is off of depressed numbers. Wal-Mart reported a 3.2% increase versus the third quarter of 2008, but off of a higher base.

The point is that these short-term comparisons can be very misleading. That’s why I like to look at time frames that span at least a full business cycle, or 3-5 years. Today’s video puts Wal-Mart’s & Kohl’s third quarter earnings reports into perspective.

Best when viewed in full youtube screen.

Disclosure: Author Manages Portfolios Long KSS

Short-term reports can be misleading. Longer term cash flows and earnings are whats most important. Having a clear perspective is a great benefit for the prudent investor.

The opinions in this document are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned or to solicit transactions or clients. Past performance of the companies discussed may not continue and the companies may not achieve the earnings growth as predicted. The information in this document is believed to be accurate, but under no circumstances should a person act upon the information contained within. We do not recommend that anyone act upon any investment information without first consulting an investment advisor as to the suitability of such investments for his specific situation.

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