Kohl’s Q4 Earnings vs. Expectations
In Kohl’s Q4 report, the company generated $5.879 billion in revenue derived from sales, down from $6.537 billion in the same quarter last year. While the drop in business was significant, the company still beat out analyst expectations which predicted just $5.86 billion. While Kohl’s did come out on top of revenue expectations, where the company really shined was in earnings per share. In fact, the business reported impressive earnings of $2.22 per share, shattering analyst projections that had estimated earnings of only $1.01 per share — over $1 less.
The biggest area of positive growth for the company remains similar to much of the entire retail business right now: online sales. As the COVID-19 pandemic kept stores closed throughout much of the year, several businesses began bolstering their online presence in order to make up for the lack of in-person customers. Kohl’s did the same thing, leading to an increase in online sales of 22% compared to the same quarter last year. The increase in online sales along with better than expected revenues and earnings per share all led to the business providing extremely optimistic 2021 fiscal year guidance.
Kohl’s Future Outlook and Stock Market Reaction
On top of the positive Q4 report, what got many investors the most excited about the company was the bold projections made for the 2021 fiscal year. In fact, the business predicts net sales to increase by a percentage in the mid-teens over the entire year, with analysts projecting that growth to be about 17.5%. As a result of projected growth in business, the company saw its stock rise slightly in pre-market trading — close to 0.5%. The company’s stock is now trading over $20 higher per share than it was in pre-pandemic levels, showing not simply a recovery for Kohl’s but a legitimate rise in value.
In a statement released with the Q4 report, Kohl’s CEO Michelle Gass said, “After an extraordinary year managing through the pandemic, we ended the year in a very solid financial position, and we enter 2021 with strong momentum. We are pleased with the progress we are making against our strategic initiatives and we are set up to deliver a multi-year improvement in sales and operating margin.”
About the Author
Tom Price is a writer focusing on entertainment and sports features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.