Department store chain Kohl’s Corp (NYSE: KSS) reported fiscal 2021 third-quarter earnings that blew away the Street estimates. The company’s revenues also surpassed expectations. While reporting exceptional quarterly results, Kohl’s also lifted its FY 2021 outlook. Following the quarterly results, the stock gained 10.62% or $6 to close at $62.48.
The Menomonee Falls, Wisconsin-based company reported third-quarter revenues of $4.600 billion, up 15.6% from $3.979 billion in the comparable period last year.
For the quarter ending October 30th, 2021, net income was $243 million, or $1.65 per share, compared with a net loss of $12 million, or $0.08 a share, in the quarter ending October 31st, 2020.
Excluding charges, if any, the Q3 2021 non-GAAP earnings were $243 million, or $1.65 per share, an increase from $2 million, or $0.01 a share in Q3 2020. On average, economists surveyed by Refinitiv had anticipated the company to report earnings of $0.64 per share on revenues of $4.27 billion.
Segment-wise,
- Net sales were $4.366 billion, an increase of 15.50% from last year.
- Other revenues grew by $34 million to $234 million in the third quarter.
Comp sales, reflecting sales online and at stores that remained open for a minimum of 12 months, rose by 14.70% in Q3 2021, surpassing the 12.50% increase anticipated by analysts polled by StreetAccount.
Kohl’s ended Q3 2021 with cash and cash equivalents of $1.873 billion, down from $1.939 billion in Q3 2020.
Looking ahead, Kohl’s now anticipates FY 2021 adjusted earnings of between $7.10 and $7.30 per share, versus an earlier guidance range of $5.80 to $6.10 per share. Analysts surveyed by Thomson Reuters anticipate the company to report earnings of $6.08 per share for the full-year period.
The company also anticipates net sales to rise in the mid-twenties percentage, against earlier outlook calling for low-twenties percentage growth.
The company also revealed that it repurchased $506 million worth of shares in the recent quarter. Overall, Kohl’s intends to repurchase shares worth $1.30 billion in the fiscal year 2021.
It can be remembered that the company’s Board has declared a quarterly cash dividend of $0.25 per share on November 10th, payable on December 22nd, 2021.
The quarterly earnings beat and upward revision of FY 2021 estimates are expected to keep the stock slightly bullish in the short term.
The historical price chart indicates that the stock has solid support near 60. The stock is trading above its 50-day moving average while the MACD indicator’s reading has turned positive. Therefore, we are anticipating the stock to remain in an uptrend in the short term.
Disclaimer: Any financial trading analysis offered here is our opinion and is not intended as advice or direction for investors. We cannot guarantee the success of any trades made as a consequence of this article, and we encourage traders to incorporate a strong money management strategy to limit losses when they enter the markets. Please use this article as part of your own research before formulating strategies prior to trading.
