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Summary
- Kohl’s revenue soared 60.1 percent year-over-year in the first quarter.
- The retailer posted income of US$14 million, or 9 cents per share.
- Kohl’s stock surged 47 percent YTD.
Kohl’s Corporation (NYSE:KSS) stock plummeted 10.19 percent on Thursday morning, May 20, despite strong topline growth in the first quarter and an improved full-year forecast.
The Wisconsin-based department store chain saw a 60.1 percent year-over-year growth in its first-quarter revenue and posted a net income of US$14 million, against a loss of US$541 million in the year-ago quarter.
However, in the earnings call, CFO Jill Timm mentioned headwinds from supply chain disruptions. Tim also noted that a favorable industry backdrop provided a greater percentage of full-price selling for the company but expected those tailwinds to ease as the year progresses.
Results
Kohl’s revenue totaled US3.89 billion in Q1 ended May 1, compared with US$2.43 billion in the same period a year ago. Net sales soared 69.5 percent, with strong growth in the apparel business.
The company’s diluted EPS came in at 9 cents during the period, against a loss of US$3.52 per share in the year-ago quarter.
Adjusted net income during the quarter was US$165 million, or US$1.05 per share, compared with a loss of US$495 million, or US$3.22 per share.
The results are compared with Kohl’s previous first-quarter earnings, in which the company took a huge impact from store closures amid the raging pandemic.
In addition, Kohl's board has declared a quarterly dividend of 25 cents per share.
Read More: Macy’s Raises FY’21 Forecast; Stock Up 68% YTD
Outlook
Kohl’s anticipates its fiscal full-year net sales to increase in the range of mid-to-high teens percentage. Previously, it was expecting an increase in the range of mid-teens percentage.
Adjusted EPS is projected to come in the range of US$3.80 to US$4.20, up from the prior forecast of US$2.45 to US$2.95.
Stock Performance
Kohl’s has a market capitalization of over US$8.5 billion. The stock fell 18 percent in 2020 but climbed 47 percent YTD. The shares have a 52-week trading range of US$16.31 to US$64.80.
Kohl’s ended Thursday’s trading at US$54.11.
Read More: Target’s Stock Up 4% On Strong Q1 Earnings
