Department store chain Kohl’s Corp. (KSS) on Thursday reported a profit for the first quarter compared to a steep loss last year, boosted by improved margins, lower expenses and higher revenues. Adjusted earnings per share and quarterly revenues came in well above analysts’ expectations. The company also raised its earnings and net sales growth guidance for the full-year 2021,based on the first quarter results.
“We are very pleased with our strong start to 2021 with both sales and earnings materially exceeding expectations. Along with a favorable consumer spending backdrop, we continue to see our key strategic initiatives gain traction and resonate with customers,” said Michelle Gass, Kohl’s chief executive officer.
For the first quarter, the company reported a net income of $14 million or $0.09 per share, compared to a net loss of $541 million or $3.52 per share in the prior-year quarter.
Excluding items, adjusted net income for the quarter were $1.05 per share, compared to adjusted net loss of $3.22 per share last year.
On average, 15 analysts polled by Thomson Reuters expected the company to report earnings of $0.04 per share for the quarter. Analysts’ estimates typically exclude special items.
Total revenue for the quarter surged 60.1 percent to $3.89 billion from $2.48 billion in the prior-year quarter. Analysts expected revenue of $3.48 billion for the quarter. Net sales were $3.66 billion, up 69.5 percent from last year’s $2.16 billion.
On May 12, Kohl’s Board of Directors declared a quarterly cash dividend on the Company’s common stock of $0.25 per share, payable June 23, 2021 to shareholders of record at the close of business on June 9, 2021.
Looking ahead to fiscal 2021, the company now projects adjusted earnings in a range of $3.80 to $4.20 per share, excluding any non-recurring charges, on net sales growth in the mid-to-high teens percentage rate.
Previously, the company expected adjusted earnings in the range of $2.45 to $2.95 per share, excluding any non-recurring charges, on net sales growth in the mid-teens percentage rate.
“We are eagerly preparing for the upcoming launch of our Sephora partnership as well as the introduction of several new exciting brands this fall,” added Gass.
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