Kohl’s (NYSE:KSS) 2021 Q1 Earnings Report Review

Kohl’s Corp. (NYSE:KSS) started from a single department store in Brookfield, Wisconsin back in 1962. The company’s store count was 76 when it went public in 1992. The continued expansion, upgradation of distribution network, and strong online presence helped the company to become a leading omnichannel retailer in the U.S. It currently operates more than 1,100 stores across 49 states.

The Wisconsin-based department store retail chain recently announced its financial results for the first quarter. Kohl’s reported earnings of 9 cents per share for the three months ended May 1, versus a loss of $3.52 per share in the comparable period of 2020. On an adjusted basis, the company earned $1.05 per share, crushing the consensus forecast of 8 cents per share.

Revenue for the quarter came in at $3.89 billion, significantly higher than $2.43 billion in the year-ago quarter. Analysts on average were looking for revenue of $3.68 billion.

CEO Michelle Gass expressed her satisfaction with the results. She said in a statement, “We are very pleased with our strong start to 2021 with both sales and earnings materially exceeding expectations. Along with a favorable consumer spending backdrop, we continue to see our key strategic initiatives gain traction and resonate with customers. We saw momentum build through the quarter, especially in our stores where we continue to elevate the experience. We are eagerly preparing for the upcoming launch of our Sephora partnership as well as the introduction of several new exciting brands this fall.”

Kohl’s also raised its earnings outlook for the full year. The company is now expecting adjusted earnings in the range of $3.80 per share to $4.20 per share, up from its previous outlook between $2.45 per share to $2.95 per share. The updated range is well above analysts’ average estimate of $3.15 per share.

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