Kohl’s Corporation (NYSE: KSS) shares surged nearly 8 percent in premarket trading after the retail company reported on Monday that its same store sales rose 6.9 percent during the holidays from 2016.
As a result from the strong sales from the November to December period, Kohl’s raised its full year profit forecast and now expects fiscal 2017 earnings per share to range from $4.10 to $4.20, versus a prior forecast of $3.72 to $3.92. Excluding a previously disclosed fourth-quarter tax settlement of $30 million, adjusted earnings per share are expected to be between $3.98 to $4.08, compared with a prior range of $3.60 to $3.80. The retailer has outperformed rivals Macy’s and J.C. Penny. The overall industry gain was 4.9 percent, as estimated by MasterCard.
"All lines of business and all regions reported positive comp sales," CEO Kevin Mansell said in a statement. "As expected, growth in digital demand accelerated significantly in the holiday period from the year-to-date trend."
Recent initiatives including partnering with Amazon and bringing in more items from popular athletic apparel brands Under Armour, Nike, and Adidas are paying off for Kohl's, which said more people have been shopping its stores.
Analysts on average are expecting Kohl's to report an adjusted profit of $3.64 for fiscal 2017, according to a poll by Thomson Reuters. Kohl's said these adjustments don't include the impact of recent changes in federal tax legislation, which are expected to have a "positive impact" on the company's effective tax rate and result in other non-cash tax benefits.