Kohl’s Smashes Fourth-Quarter Sales and Earnings Estimates

Ken Wolter / Shutterstock.com

Mid-market retailer Kohl’s (NYSE: KSS) posted fourth-quarter earnings per share of $2.22, up from $1.99 a year ago and including a tax benefit of $1.15 per share. Analyst consensus was $1.04 per share, according to Nasdaq, which the company beat even after considering the tax benefit. Revenue was down year-over-year, according to the company’s earnings statement, but still better than expected at $6.14 billion compared to $6.83 billion for 2019.

See: Macy’s to Close 37 Stores as the Retail Apocalypse Continues in 2021
Find: 47 CEOs Taking Pay Cuts to Help Their Companies Survive the Coronavirus

In addition to the good earnings, management announced that Kohl’s would be reinstating its dividend, which was suspended in 2020. The company will pay $0.25 per quarter to shareholders of record on March 17. It will also increase its share repurchase program from $200 million to $300 million, CNBC reports.

The results are interesting for two reasons. First, Kohl’s and its peers like JCPenney (NYSE: JCP) and Sears (OTCMKTS: SHLDQ) have been struggling. They don’t offer the fashion of higher-end online retailers or the value of Target (NYSE: TGT) or Walmart (NYSE: WMT). Although they have web sites, their value propositions were based in part on locations in convenient shopping centers. Kohl’s relies on highly promotional marketing, a tactic that every retailer had to adopt in the pandemic.

Make Your Money Work Better for You

See: 100-Year-Old Companies Still in Business Today
Find: 5 Reasons Target Is Thriving Against All Odds During the Pandemic

TheStreet.com reports that these results come at a time when activist investors have been pushing for operational improvements. Macellum Advisors, Ancora Holdings and Legion Partners Asset Management together hold a 9.5% stake in the company. They have nominated nine new directors and are pushing for other changes. The current management team would like to stop them, and posting good results is one way to do that.

More from GOBankingRates

Share this article:

Make Your Money Work Better for You

About the Author

Ann Logue is a writer specializing in business and finance. Her most recent book is The Complete Idiot’s Guide: Options Trading (Alpha 2016). She lives in Chicago.
Learn More

Best Bank Accounts for September 2022

Untitled design (1)
Close popup The GBR Closer icon

Sending you timely financial stories that you can bank on.

Sign up for our daily newsletter for the latest financial news and trending topics.

Please enter an email.
Please enter a valid email address.
There was an unknown error. Please try again later.

For our full Privacy Policy, click here.