Kohl’s (NYSE: KSS) shares surged over 5% Tuesday following earnings beat. Additionally Chief Executive Michelle Gass detailed the retailer’s plans to broaden its activewear and personal care lines in 2021, two niches that have significantly grown during the ongoing global pandemic.
Nevertheless, Kohl’s reported a 13.3% decrease in sales throughout the third quarter in comparison to the previous year. However, it hinted towards a positive turnaround during the New Year.
“Some would call this the homebody economy, with people spending more time at home,” Gass said during a call with reporters. “It’s growing in importance. … And we’ve established ourselves as an active destination for the last five years, that we’re going to take to a whole new level.”
The company reported earnings of USD0.01 per share in comparison to the expected USD0.43 a share loss. Net sales amounted to USD3.78 Billion compared to analysts anticipated USD3.86 Billion. Revenue fell 14% to USD3.98 Billion, much lower than the previous year’s USD4.63 Billion.
“I continue to be very proud of how our organization is navigating through the COVID-19 pandemic,” Gass said in a news release. “Our third quarter results exceeded our expectations with significant sequential sales and profitability improvement. Digital sales growth remained strong and our actions to improve our gross margin showed great progress.”
Going forward the company aims to reduce high scale products and target its attention towards active and comfortable wear. Furthermore, it anticipates to add a new athleisure brand, named FLX, by 2021.