Kohl's Corp (KSS) - Get Kohl's Corporation (KSS) Report blasted Street forecasts for its second quarter earnings Thursday, while boosting its full-year profit guidance, as shoppers flocked to traditional retailers in the waning months of the coronavirus pandemic.
Kohl's said adjusted earnings for the three months ending on August 1 came in at $2.48 per share, up from a $25 cents per share loss for the same period last year and more than double the Street consensus forecast of $1.21 per share. Group revenues, Kohl's said, rose 38.5% to $4.447 billion, topping analysts' estimates of a $4.02 billion tally.
Looking into the 2022 financial year, Kohl's said it sees net sales growing by a 'low twenties' percentage rate, with adjusted earnings in the region of $5.80 to $6.10 per share, up from its prior forecast of $3.80 to $4.20 per share.
“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.”
“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," she added. "In addition, we have accelerated our share repurchase activity, underscoring our confidence in the business and our commitment to creating shareholder value.”
Kohl's shares were marked 0.1% higher in early trading immediately following the earnings release to change hands at $51.90 each.
Earlier Thursday, Kohl's larger rival, Macy's (M) - Get Macy's Inc Report, also smashed Street forecasts with a bottom line of $1.29 per share on sales of $5.65 billion.
Macy's also said it would reinstate its dividend at 15 cents per share, payable on October 1, while authorizing a $500 million share buyback, and boosted its full-year sales outlook to a range of $21.73 billion to $22.23 billion.
The Commerce Department's July report on U.S. retail sales showed a bigger-than-expected 1.1% decline from the previous month, but also noted that clothing and clothing accessories sales were up 43.4% from last year to around $17.779 billion.