Kohl’s shares rise after retailer posts better-than-expected earnings, sees sales growth in 2021

Kohl’s on Tuesday reported fourth-quarter earnings and sales that topped analysts’ estimates, and pointed to stronger growth in 2021.

The department store has been working to drive more shoppers online and add new brands that sell fitness gear and makeup to lure in new customers.

“After an extraordinary year managing through the pandemic, we ended the year in a very solid financial position, and we enter 2021 with strong momentum,” said CEO Michelle Gass said in a statement.

Its shares jumped nearly 2% in premarket trading.

Here’s how the company did during the quarter ended Jan. 30 compared with what analysts were expecting, using a Refinitiv survey:

• Earnings per share: $2.22 adjusted vs. $1.01 expected
• Revenue: $5.88 billion vs. $5.86 billion expected

Kohl’s reported net income of $343 million, or $2.20 per share, compared with $265 million, or $1.72 a share, a year earlier. Excluding one-time charges, the company earned $2.22 per share, topping the $1.01 forecast by analysts.

Net sales fell to $5.88 billion from $6.54 billion a year earlier, topping the $5.86 billion forecast by analysts.

The company expects sales to rise by a mid-teens percentage this year. Analysts, on average, expected sales growth of 17.51%, or $17.64 billion this year, according to Refinitiv.

Kohl’s shares are up about 45% over the past 12 months, as of Monday’s market close. The retailer has a market cap of $8.99 billion, which has grown to be bigger than Nordstrom‘s and Macy’s.

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Find the full press release from Kohl’s here.