The Kohl’s logo is displayed on the exterior of a Kohl’s store on January 24, 2022 in San Rafael, California.
Justin Sullivan | Getty Images
Kohl’s on Tuesday reported fiscal fourth-quarter sales that came in below analysts’ estimates for the key holiday quarter, as ongoing supply chain obstacles roiled retailers and shrunk inventories.
Its earnings beat expectations, however. And the retailer notably issued an upbeat outlook for fiscal 2022, calling for net sales to rise 2% to 3%. Analysts had been looking for year-over-year growth of 2.2%, according to Refinitiv.
Despite lingering supply chain headwinds and other pressures from inflation and labor costs, CEO Michelle Gass said Kohl’s achieved an operating margin of 8.6% two years ahead of schedule.
“In 2022 will build on our momentum,” Gass said in a statement. She noted that the company plans to lean into its recent partnership with makeup retailer Sephora, in which it plans to open Sephora shop-in-shops at hundreds of Kohl’s stores.
Here’s how Kohl’s did in its fourth quarter compared with what Wall Street was anticipating, according to a survey of analysts by Refinitiv:
- Earnings per share: $2.20 adjusted vs. $2.12 expected
- Revenue: $6.22 billion vs. $6.54 billion expected
Kohl’s net income for the three-month period ended Jan. 29 fell to $299 million, or $2.20 a share, compared with $343 million, or $2.20 per share, a year earlier. Earnings beat analysts’ estimates of $2.12 a share, according to Refinitiv.
Net sales grew to $6.22 billion from $5.88 billion a year earlier. That was light of estimates for $6.54 billion.
As of Monday’s market close, Kohl’s shares are up about 12% year to date, bringing the company’s market cap to $7.7 billion.
This story is developing. Please check back for updates.
Find the full earnings press release from Kohl’s here.
