Kohl’s (NYSE: KSS) announced better-than-expected earnings Thursday, with sales rising 16% as consumers flocked to its stores and website to purchase clothes and makeup. Shares were up over 5% during early morning trading.
Amid the coronavirus pandemic, Kohl’s was one of the various retailers that were greatly impacted as lockdowns remained in effect. However, as restrictions eased and people shifted back towards everyday life, the company strived to entice customers with a variety of clothing as well as its new partnership with Sephora.
The American department store retail chain reported earnings of USD1.65 per share, compared to the expected USD0.64 a share. Revenue amounted to USD4.6 Billion, higher than analysts anticipated USD4.27 Billion.
“Our strategic efforts to transform Kohl’s into the leading destination for the active and casual lifestyle continue to build momentum. We delivered another quarter of record earnings with both sales and margins exceeding expectations. During the quarter, we drove accelerated growth in Active and successfully launched several new brand partnerships, including the initial rollout of 200 Sephora at Kohl’s stores, which are off to a great start,” said Michelle Gass, Kohl’s chief executive officer.
“All of the pieces of our strategy are coming together and we remain incredibly confident in the future of our business. We are raising our full-year 2021 guidance and continue to accelerate our share repurchase activity, reinforcing our commitment to driving shareholder value,” said Gass.
Digital sales rose 6% within the third quarter and 33% on a two-year basis, according to Gass. E-commerce totaled 29% of all sales during that quarter.