Kohl’s sees holiday-quarter revenue down 10%, but sales strengthening
A view outside of a Kohls store in Miramar, Florida.
Johnny Louis | Getty Images
Kohl’s announced Thursday that fiscal fourth quarter sales will be down about 10% year over year and sales in the same store will decrease 11%. However, the retailer said sales are gaining momentum.
According to a survey compiled by Refinitiv, analysts had called for a decline in sales of 8.9%.
The department store chain expects earnings per share in the range of $ 1.00 to $ 1.05 for the fourth quarter before considering the effects of tax planning strategies. Analysts had demanded an adjusted profit of 70 cents per share.
Kohl’s shares gained around 1% in premarket trading.
More customers visited Kohl’s website during the pandemic. According to Michelle Gass, general manager, digital sales accounted for more than 40% of net sales for the reporting period, up more than 20% year over year.
“Our fourth quarter performance exceeded our expectations on all key metrics and boosted sales over the period,” she said in a statement. The company tightened its spending management and helped strengthen its financial position for the New Year.
“If we continue this momentum through 2021, we are confident that our key strategic initiatives will accelerate,” said Gass, highlighting Kohl’s upcoming fall launch with Sephora and the bet that the partnership will bring more buyers to its stores.
At the close of trading on Wednesday, Kohl shares were up more than 8% in the past 12 months. Kohl’s has a market cap of $ 7.35 billion, which is larger than Nordstrom and Macy’s.
Kohl’s is expected to release fourth quarter results on March 2nd.
The full press release from Kohl’s can be found here.
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