Kohl’s Corporation (NYSE: KSS) reported market-beating results for the fiscal first quarter on Thursday and raised its guidance for the full year. The stock, however, was still registered under pressure in premarket trading.
Impact on the share price
Kohl’s shares opened more than 10% down on Thursday as investors questioned if the COVID-19 driven demand will sustain in the upcoming months as the U.S. gets vaccinated and restrictions start to ease. The quarterly sales were also uninspiring (10% lower) compared to the same quarter of 2019 (before the pandemic).
On a year-to-date basis, however, the stock is still up about 35%. At the time of writing, Kohl’s is valued at $8.54 billion (£6.04 billion). The Wisconsin-based company had also topped analysts’ estimates in the prior quarter (Q4).
Financial performance
Kohl’s said that its net income in the first quarter printed at $14 million that translates to 9 cents per share. In the same quarter last year, it had posted $541 million of net loss, or $3.52 per share.
On an adjusted basis, the department store company earned $1.05 in Q1. Kohl’s generated $3.89 billion of revenue in the recent quarter versus the year-ago figure of $2.43 billion. According to FactSet, experts had forecast the company to record $3.68 billion of revenue and 8 cents per share of adjusted EPS.
Guidance for the full financial year
For the full financial year, the retail firm now expects its net sales to climb by 15% to 19%. Kohl’s forecasts up to $4.20 of adjusted per-share earnings this year. Analysts, on the other hand, are calling for a lower $3.15 of adjusted EPS.
According to Kohl’s, its digital sales noted a 14% annualised growth in the first quarter. The NYSE-listed firm wants to bring Sephora (beauty retailer) to roughly two hundred of its countrywide stores later this year.
CEO Michelle Gass remarks
Commenting on the earnings report on Thursday, CEO Michelle Gass said:
“Along with a favourable consumer spending backdrop, we continue to see our key strategic initiatives gain traction and resonate with customers. We saw momentum build through the quarter, especially in our stores, where we continue to elevate the experience. We are eagerly preparing for the upcoming launch of our Sephora partnership as well as the introduction of several new exciting brands this fall. We are positioned to capitalise on growth opportunities during the balance of 2021 and remain firmly on track to achieving our 2023 strategic goals.”
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Wajeeh Khan
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