Kohl’s department store exterior in Minneapolis, United States. Shutterstock.
Kohl’s Corp raised its forecast for 2021 revenue and profit after topping first-quarter estimates on Thursday, as the US department store operator bets on a shopping boom after a gloomy year due to the coronavirus pandemic.
US retailers, including Macy’s Inc, TJ Maxx parent TJX Cos Inc, Walmart Inc and Target Corp , have all pointed to a rebound in demand for non-essential products as vaccinated Americans feel more comfortable to step out and shop.
“Along with a favourable consumer spending backdrop, we continue to see our key strategic initiatives gain traction and resonate with customers,” chief executive officer Michelle Gass said in a statement.
Kohl’s forecast 2021 adjusted earnings to be between $3.80 and $4.20 per share, excluding certain charges, versus a prior range of $2.45 to $2.95.
The mid-priced retailer also said it was expecting net sales to increase in the mid-to-high teens percentage range, compared with its previous forecast for a rise in the mid-teens percentage range.
However, the sales forecast was largely below heightened analysts’ expectations of a 19.3 percent jump, according to IBES data from Refinitiv.
Shares in Kohl’s fell about 4 percent in pre-market trading. They have gained about 50 percent this year.
In the first quarter ended May 1, net sales rose about 70 percent to $3.66 billion, beating estimates of $3.48 billion. Excluding items, the company earned $1.05 per share, crushing estimates of 4 cents.
Reporting by Praveen Paramasivam in Bengaluru; Editing by Sriraj Kalluvila