Kohl's share price rises as it delivers an impressive quarter
The department store operator, Kohl’s has delivered an impressive holiday quarter resulting in its share price jumping up to 7.5%
Investors were over the moon with Khohl’s quarterly results released on Wednesday, making the stock one of the top three S&P500 gainers.
The better than expected earnings saw the children's and men's clothing contribute most to the company's sales growth, as well as sportswear and active brands, including Nike and Fitbit playing an important role in enabling top line growth.
New partnerships attract more shoppers
Kohl’s partnerships with Amazon and a range of new brands seemed to attract more shoppers.
Kohl’s CEO Michekke Gass said: ‘With a clear focus on driving traffic and operating with discipline, the company is delivering sales growth while also improving profitability,’
On an unadjusted basis, the company's profit slid 42 % to $272 million, with adjusted earnings of $2.24 per share. The company’s revenue was $6.823 billion beating forecasts of $6.579 billion.
The company paid off $413 million in bonds during the quarter, taking a $21 million loss to extinguish outstanding debt.
Kohl’s said it expects earnings per share for 2019 between $5.80 and $6.15 per share, beating expectations.
Gross margins of 33.5% were flat year-over-year, with 27.9% of total assets and down 140 basis points year-over-year.
Adjusted EPS rose 20% to $2.24 in the fourth quarter and surged 34% to $5.60 for the full year beating the company's updated guidance range of $5.50 to $5.55.
Kohl’s share price
Kohl's share rose in response to the earnings, jumping 7% and rising to a total of 7.5% on Wednesday.
In early morning trading, the company's shares had already risen 5.3% to $70, getting a boost after the company beat Wall Street's fourth quarter profit estimates.
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