Kohl’s Tops Earnings Estimates and Boosts 2021 Outlook

Kohl’s Tops Earnings Estimates and Boosts 2021 Outlook

Kohl’s (NYSE: KSS) shares climbed 18% Thursday after the company reported positive second-quarter earnings. The surge comes as shoppers began to return to traditional retailers amid the ease in covid restrictions.

“Based on our results, we are raising our full year 2021 guidance, which positions us to achieve many of our 2023 strategic goals this year, well ahead of our plan,” CEO Michelle Gass said in a press release.

The American department store chain reported earnings of USD2.48 per share, compared to the expected USD1.21 a share. Revenue totaled USD4.45 Billion, higher than analysts anticipated USD4.02 Billion. Kohl’s now believes full-year earnings per share will amount anywhere from USD5.80 to USD6.10.

“Our performance in the second quarter marked another important step in further establishing Kohl’s as the leading destination for the active and casual lifestyle. We delivered record second quarter earnings with sales and margins materially exceeding expectations,” said CEO Michelle Gass. “As pleased as we are with our ongoing strategic progress, much of our opportunity is still ahead of us. We are on the eve of launching several transformational partnerships that will drive sustainable growth for years to come.”

Throughout the quarter, Kohl’s rebought USD255 Million of its stock and it plans to buy back another USD500 Million to USD700 Million of its shares before year’s end. Previously, the retailer had intended to only buy back USD200 Million to USD300 Million.

Kohl’s activewear experienced high demand and saw growth in both apparel and footwear. The company is now focusing more on the division as customers long for more comfortable and casual wear.

“We have a goal to expand active and outdoor to 30% of our business. We continue to drive strong active sales growth, and in Q2, it represented 24% of our sales, up from 20% in 2019,” she said.

The retailer’s shares have risen over 27% throughout the year and has a current market value of USD8.1 Billion.

Opt-into our eNewsletter NOW! For the Latest Trending Financial News Topics in Cannabis, Tech, Biotechs, Precious Metals, Energy, Renewable Energy and much more!