World Markets

Kohl's forecasts earnings above Wall St estimates, shares jump

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.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

AMZN

Other Topics

Stocks

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More