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A view outside a Kohl’s store in Miramar, Florida.
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Kohl’s said Thursday that it anticipates fiscal fourth-quarter revenue to be down about 10% year over year, and same-store sales to drop 11%, but the retailer said sales are gaining momentum.
Analysts had been calling for a revenue decline of 8.9%, according to a poll compiled by Refinitiv.
The department store chain said it expects fourth-quarter earnings per share to be in the range of $1.00 to $1.05, before considering any impact from tax planning strategies. Analysts had been calling for earnings of 70 cents per share, on an adjusted basis.
Kohl’s shares were up more than 2% in premarket trading.
With more shoppers visiting Kohl’s website during the pandemic, Chief Executive Michelle Gass said digital sales represented more than 40% of net sales during the period, up more than 20% year over year.
“Our fourth-quarter performance exceeded our expectations across all key metrics with sales strengthening as we moved through the period,” she said in a statement, adding that the company managed expenses more tightly, helping it to strengthen its financial position heading into the new year.
“As we carry this momentum into 2021, we are confident that our key strategic initiatives will accelerate,” Gass said, highlighting Kohl’s upcoming fall launch with Sephora, and the bet that the partnership will drive more shoppers to its stores.
As of Wednesday’s market close, Kohl’s shares are up more than 8% over the past 12 months. Kohl’s has a market cap of $7.35 billion, which has grown to be greater than that of Nordstrom and Macy’s.
Kohl’s is set to report fourth-quarter results on March 2.
Find the full press release from Kohl’s here.
This story is developing. Please check back for updates.
