Kohl’s Raises 2021 Forecasts as Americans Return to Stores

Kohl’s Raises 2021 Forecasts as Americans Return to Stores

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

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