Kohl’s Inc. raised its full-year 2021 financial outlook after reporting third-quarter net sales and earnings that easily exceeded Wall Street expectations. Third-quarter comparable sales jumped 14.7 percent against a year-ago decline of 13.3 percent.

In the quarter ended October 30, net sales increased 15.5 percent to $4.6 billion, topping Wall Street’s consensus target of $4.27 billion.

Gross margins improved to 39.9 percent from 35.8 percent.

Net income came to $243 million, or $1.65, against a loss of $12 million, or 8 cents, a year ago and well above Wall Street’s consensus estimate of 64 cents. In the year-ago period, adjusted earnings were $2 million, or 1 cent a share.

“Our strategic efforts to transform Kohl’s into the leading destination for the active and casual lifestyle continue to build momentum. We delivered another quarter of record earnings with both sales and margins exceeding expectations. During the quarter, we drove accelerated growth in Active and successfully launched several new brand partnerships, including the initial rollout of 200 Sephora at Kohl’s stores, which are off to a great start,” said Michelle Gass, Kohl’s chief executive officer.

“All of the pieces of our strategy are coming together and we remain incredibly confident in the future of our business. We are raising our full-year 2021 guidance and continue to accelerate our share repurchase activity, reinforcing our commitment to driving shareholder value,” said Gass.

Updated 2021 Financial Outlook
The company is raising its full-year 2021 financial outlook to include the following:

  • Net sales are now expected to increase in the mid-twenties percentage range compared to the previous expectation of low-20s percentage range increase;
  • Operating margin is now expected to be in the range of 8.4 percent to 8.5 percent compared to the previous expectation of 7.4 percent to 7.6 percent;
  • Adjusted earnings per share are now expected to be in the range of $7.10 to $7.30, excluding any non-recurring charges, compared to the previous expectation of $5.80 to $6.10.

Dividend
As previously announced, on November 10, 2021, Kohl’s Board of Directors declared a quarterly cash dividend on the company’s common stock of $0.25 per share. The dividend is payable December 22, 2021 to shareholders of record at the close of business on December 8, 2021.

Photo courtesy Kohl’s