Kohl’s (KSS) earnings within the fourth quarter of 2020 hit
Customers leave a Kohl’s store on November 12, 2015 in San Rafael, California.
Justin Sullivan | Getty Images News | Getty Images
Kohl’s on Tuesday reported fourth-quarter earnings and sales that exceeded analyst estimates, suggesting stronger growth in 2021.
Under pressure from activist investors, the company said it would reinstate its dividend and buy back shares.
Kohl’s has worked to get more buyers online and add brands that sell fitness equipment and makeup to attract new customers.
“After an exceptional year in mastering the pandemic, we ended the year in very solid financial shape and are entering 2021 with strong momentum,” CEO Michelle Gass said in a statement.
Its shares rose nearly 2% in premarket trading.
The company performed in the quarter ended January 30th compared to analysts’ expectations based on a refinitive survey:
- Earnings per share: $ 2.22 adjusted versus $ 1.01 expected
- Revenue: $ 5.88 billion versus $ 5.86 billion expected
Kohl’s reported net income of $ 343 million, or $ 2.20 per share, compared to $ 265 million, or $ 1.72 per share, last year. With no one-time expenses, the company made $ 2.22 per share, beating analysts’ forecast of $ 1.01.
Net sales declined to $ 5.88 billion from $ 6.54 billion last year, surpassing analysts’ forecast of $ 5.86 billion.
The company expects sales this year to grow a percentage by mid-teens. Analysts were expecting average revenue growth of 17.51% or USD 17.64 billion this year, according to Refinitiv.
Kohl’s shares are up about 45% over the past 12 months at Monday’s close. The retailer has a market cap of $ 8.99 billion, which is larger than Nordstrom and Macy’s.
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The full press release from Kohl’s can be found here.