Reuters
March 5 () - Kohl's Corp forecast full-year profit above Wall Street estimates on Tuesday, as partnerships with Amazon and a range of new brands attract more shoppers.
The company's shares rose 5.3 percent to $70 in early trading, also getting a boost after the company beat Wall Street estimates for same-store sales and profit in the fourth quarter.
Kohl's has been investing in several new partnerships to bring in more shoppers. It signed a deal with Amazon to display its Echo dot speakers and Kindle e-readers in its stores, while it partnered with millennial-focused Popsugar to launch a new line of clothes.
"I definitely think Kohl's initiatives are working," Edward Jones analyst Brian Yarbrough said, pointing to several factors including improvements in its loyalty program and the partnership with Amazon.
Menomonee Falls, Wisconsin-based Kohl's projected earnings of $5.80 to $6.15 per share for fiscal year 2019. Analysts were expecting $5.77, according to IBES data from Refinitiv.
"We are financially strong and our overall health in the business is positioning us well for continued success," Chief Executive Officer Michelle Gass said.
The company also said it would close four underperforming stores in April, which will be replaced with smaller format stores.
Excluding one-time items, Kohl's earned $2.24 per share in the fourth quarter ended Feb. 2, beating the average analyst estimate of $2.18.
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