Kohl’s earnings (KSS) in the fourth quarter of 2020

Kohl’s on Tuesday reported fourth-quarter earnings and sales that exceeded analysts’ estimates and showed stronger growth in 2021.

Faced with pressure from activist investors, the company said it would restore its dividend and buy back shares.

With its tense pandemic sales, Kohl’s has worked to attract more online shoppers and add brands selling home accessories., fitness equipment and makeup to attract new customers. It has also tried to reduce costs and reduce inventories, and these efforts have helped to improve profits.

“After an extraordinary year of pandemic management, we have ended the year in a very solid financial position and we are entering 2021 with a strong momentum,” CEO Michelle Gass said in a statement.

Kohl’s shares rose about 1% in premarket trading.

Here’s how the company did in the quarter ended January 30 compared to what analysts expected, using a Refinitive survey:

• Earnings per share: USD 2.22 adjusted compared to the expected USD 1.01
• Revenue: $ 5.88 billion compared to $ 5.86 billion expected

Kohl’s net income was $ 343 million or $ 2.20 per share, compared to $ 265 million or $ 1.72 per share a year earlier. Excluding one-time taxes, the company earned $ 2.22 a share, beating analysts’ $ 1.01 forecast.

Sales fell to $ 5.88 billion from $ 6.54 billion a year earlier, exceeding analysts’ $ 5.86 billion forecast.

Online sales increased by 22% compared to the previous year and accounted for 42% of total sales.

The company expects sales to grow by a percentage from mid-adolescence this year. Analysts, on average, expected a 17.5% increase in sales, or 17.64 billion dollars, this year, according to Refinitiv. The forecast of adjusted earnings will be between $ 2.45 and $ 2.95 per share for 2021, largely in line with expectations of $ 2.67 per share.

Last week, Kohl’s rejected an attempt by a group of investors to take control of its board. The retailer claimed that it would disrupt the impulse he had in reviving his business. The group, which consists of advisers Macellum, Ancora Holdings, Legion Partners Asset Management and 4010 Capital, holds a 9.5% stake.

On Tuesday, Kohl’s said it would spend between $ 200 million and $ 300 million this year to buy back the shares. He said he plans to invest at least $ 550 million in capital spending, with some of that money to debut hundreds of Sephora mini-stores in its stores and open the sixth largest e-commerce hub in the United States.

At the end of last month, Kohl’s said its board had declared the payment of dividends of 25 cents per share.

About a year ago, Kohl’s completely withdrew its $ 1 billion unsecured credit facility to increase its cash position and temporarily suspended share repurchases. In late March, he was forced to close stores nationwide for a period of time in an attempt to stop the spread of the coronavirus. Its sales have been successful because consumers have spent less on clothing and footwear and more on food and other household items.

But Kohl’s did far better than rivals in the mall, including Macy’s and JC Penney. And analysts anticipate that its position outside the mall will continue to bode well for the retailer in 2021.

Kohl’s shares have risen about 45% in the past 12 months since Monday’s market close. The retailer has a market cap of $ 8.99 billion, which has grown to be higher than that of Nordstrom and Macy.

Find the full press release from Kohl’s here.