Kohl’s Corp. came roaring back in the second quarter, with better-than-expected earnings and sales and raised its outlook for the year.
Earlier this month, the department store retailer celebrated the opening of the first round of branded Sephora shops at Kohl’s. Michelle Gass, CEO of Kohl’s, teased that the company will be debuting more partnerships in the future.
“We delivered record second quarter earnings with sales and margins materially exceeding expectations,” said Michelle Gass, Kohl’s CEO. “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.”
Kohl's reported net income of $382 million, or $2.48 per share, for the quarter ended July 31, up from $47 million, or $0.30 per share, in the year-ago period. Analysts’ estimates were for earnings per share of $1.26.
Sales rose 31.4% to $4.223 billion. Analysts were looking for sales of $3.959 billion.
Similar to rival Macy’s https://www.chainstoreage.com/macys-earnings-crush-estimates-comp-sales-soar, Kohl’s raised its net sales outlook for the year. It now expects sales to grow in the low-twenties percentage, up from previous guidance of the mid-to-high teens. The retailer forecasts for adjusted EPS in the range of $5.80 to $6.10, up from previous outlook for $3.80 to $4.20.
“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,” Gass said. “In addition, we have accelerated our share repurchase activity, underscoring our confidence in the business and our commitment to creating shareholder value.”