Customers leave a Kohl’s store on November 12, 2015 in San Rafael, California.
Justin Sullivan | Getty Images News | Getty Images
Kohl’s on Thursday said sales rose 16% in the fiscal third quarter, as shoppers turned to its stores and website for clothes and makeup.
Following the better-than-expected performance, the department store raised its forecast for the year, saying it expects to earn between $7.10 and $7.30 per share, excluding charges. Previously, Kohl’s predicted earnings of $5.80 to $6.10 per share.
Shares rose more than 6% in premarket trading.
Here’s what the company reported for the third quarter ended Oct. 30, according to Refinitiv consensus estimates:
Earnings per share: $1.65 vs. 64 cents expectedRevenue: $4.6 billion vs. $4.27 billion expected
Net income rose to $243 million, or $1.65 per share, from a net loss of $12 million, or 8 cents per share, a year earlier. The results topped the 64 cents per share expected by analysts surveyed by Refinitiv.
Revenue climbed to $4.6 billion from $3.98 billion a year ago, outpacing estimates of $4.27 billion.
Same-store sales, which track sales online and at Kohl’s stores open for at least 12 months, grew 14.7% in the third quarter, topping the 12.5% gain that analysts expected, according to StreetAccount.
Kohl’s is one of the retailers that was hit hard by the pandemic, as Americans spent time at home and had few reasons to refresh their wardrobe or buy new shoes. As consumers get out and about again, it is trying to draw them in with a wider assortment of casual clothing, including activewear, and a new partnership with Sephora. It has opened about 200 Sephora shops inside of Kohl’s stores and plans to add more.
The company said it bought back $506 million of shares in the third quarter and now plans to repurchase a total of $1.3 billion of shares in 2021.
As of Wednesday’s close, Kohl’s shares are up about 39% this year. Shares closed down about 3% to $56.48 on Wednesday, bringing the company’s market share to $8.50 billion.
Read the company’s press release here.
This story is breaking news. Please check back for updates.
