Kohl’s Comes on Strong in Third Quarter
While Kohl’s was hit particularly hard by the pandemic, the company has notched an impressive comeback in 2021. The department store’s sales increased by 16 percent in the third quarter and it raised its 2021 forecast on the heels of such strong performance. Kohl’s stock is up more than 50 percent this year—with a market value of nearly $9.5 billion.
In the quarter ending on Oct. 30, Kohl’s reported earnings per share of $1.65, versus an expected 64 cents, as well as revenue of $4.6 billion, notably higher than the expected $4.27 billion. Just one year earlier, the company reported a net loss of $12 million in the same quarter. Excluding charges, Kohl’s now anticipates earnings between $7.10-$7.30 for the year.
Company CEO Michelle Gass has been leading the way with a new in-store partnership with make-up giant Sephora that is drawing in a younger, more diverse customer base as well as an enhanced focus on casual apparel and activewear. Both in-store and online sales are continuing to grow at a remarkable rate this year. The next big launch will feature an exclusive Draper James collection to entice fans of the well-known Reese Witherspoon line.
About 200 Kohl’s stores now boast Sephora shops, and those same stores are experiencing stronger same-store sales than other locations—more than one-quarter of Sephora fans are new Kohl’s shoppers. More stores nationwide are also enjoying a refresh.
Current challenges for Kohl’s include lower inventory due to ongoing supply chain issues and increased costs, however, the company has updated its website to share additional options when products are out of stock or currently unavailable. It has also pulled back on discounts.
As Kohl’s enjoys more success with shoppers, it may also draw more interest from savvy investors.