Kohl’s shares rise in pre-market trading after strong third quarter sales
MENOMONEE FALLS, Wisconsin – Shares of Kohl’s rose nearly 9% in pre-market trading after the company posted a 15.5% net sales increase in the third quarter for the quarter ended October 30, 2021 .
Revenue for the quarter was $ 4.6 billion compared to an expected revenue of $ 4.27 billion.
Kohl’s also posted a record third quarter earnings per share of $ 1.65, down from negative 0.08 cents in the third quarter of last year.
The company has revised its guidance for the fourth quarter with net sales expected to rise in the 20s from the previous expectation of a lower percentage range in the 20s.
âOur strategic efforts to transform Kohl’s into the destination of choice for the active and relaxed lifestyle continue to gain momentum. We had another quarter of record profits with sales and margins exceeding expectations, âsaid Michelle Gass, CEO of Kohl. âDuring the quarter, we accelerated the growth of our active businesses and successfully launched several new brand partnerships, including the initial rollout of 200 Sephoras in Kohl’s stores.
Gass added that all elements of the company’s strategy come together and they remain confident in the future of the company. During the call with investors, Gass said Kohl’s repositioning efforts are working and the company expects to exceed its 2023 targets this year.
âThe home category really resonates with customers, especially everything about the kitchen,â Gass said during the earnings call. âThis is one of the categories we are focusing on for the next holiday season. “
The company has also seen significant growth in its omnichannel customers who are the most productive, according to Gass, with digital sales up 33% on a two-year basis. On the brick and mortar side, the company plans to open 250 new stores by 2023 and recently opened four new stores at the start of this fourth quarter.
Gass said on the call that Kohl’s has encountered supply chain issues with extended transit times and the most visible evidence is that inventory levels are down 25% on a two-year basis. The company said it has a number of measures in place to minimize such delays as much as possible.