A view outside a Kohl’s store in Miramar, Florida.
Johnny Louis | Getty Images
Michelle Gass, CEO of Kohl, said the retailer gained momentum at the end of the holiday quarter due in part to the influx of shoppers entering its stores to bring Amazon back.
The department store chain said on Thursday that it expects tax revenues in the fourth quarter to fall by about 10% year-on-year and sales in the same store to fall by 11%, but sales have picked up in recent weeks. Analysts were demanding a 8.9% drop in revenue, according to a poll by Refinitiv.
“You could assume that returns, which are usually higher in January, played a role in directing traffic toward the end of the quarter,” Gass said in a telephone interview. Kohl’s accepts Amazon’s return to more than 1,100 locations, most of which are located outside the mall.
Meanwhile, the department store chain said it expects fourth-quarter earnings per share to be between $ 1.00 and $ 1.05, before considering any impact of fiscal planning strategies. Analysts demanded earnings of 70 cents per share on an adjusted basis.
Kohl’s shares rose more than 4% on Thursday morning.
With several shoppers visiting the Kohl site during the pandemic, CEO Michelle Gass said digital sales accounted for more than 40 percent of net sales during the period, up more than 20 percent year-over-year.
“Our fourth-quarter performance exceeded all expectations in all key terms, consolidating sales as we moved through this period,” she said in a statement, adding that the company managed expenses more closely, helping it will strengthen its financial position towards the new year.
“As we promote this momentum in 2021, we are confident that our key strategic initiatives will accelerate,” said Gass, noting the upcoming fall of Kohl’s Fall with Sephora and the bet that the partnership will drive more shoppers to its stores.
Gass said active clothing, household goods and beauty continue to be among the retailer’s top categories.
“Kohl’s is extremely well positioned as we move into next year,” she said. “There have been a lot of disruptions in the industry and we will benefit from that.”
At the close of the market on Wednesday, Kohl’s shares have risen by more than 8% in the last 12 months. Kohl’s has a market cap of $ 7.35 billion, which has grown to be higher than that of Nordstrom and Macy’s.
Kohl’s will report fourth-quarter results on March 2.
Find the full press release from Kohl’s here.