On Thursday, Kohl’s Corporation (NYSE: KSS), reported the Q4 financial results with higher-than-expectation earnings and revenue driven by strong holiday-quarter sales growth.
Through the document released, Kohl’s highlighted that the comparable sales increased 6.3%, annual diluted earnings per share were $5.12, and excluding tax reform benefits, diluted earnings per share were $4.31, exceeding the high end of guidance by $0.11 per share.
The company's net income also went up to $468 million, or $2.81 a share, compared with $252 million, or $1.44 per share, a year ago. Revenue of the fourth quarter rose 9.2 percent to $6.78 billion, while analysts were calling for sales of $6.74 billion. Same-store sales increased more than 6, which is impressive since same period of prior year, same-store sales were down 2.2 percent. This Wednesday, Kohl's Board of Directors also declared a quarterly cash dividend on the Company's common stock of $0.61 per share, an 11% increase over its prior dividend.
According to Kevin Mansell, chairman, chief executive officer and president of Kohl’s, the company ended the year with 7% less inventory by improving the merchandise margins through “strong inventory management and improved promotional and permanent markdowns”. Kevin Mansell also said in the statement that the whole company has managed the expenses effectively this year.
For the next fiscal year, Kohl's is expecting earnings per share of $4.95 to $5.45, on comparable sales growth of flat to 2 percent.