Kohl’s Q3 earnings top estimates, sales up 16%

kohl's earnings

The American department store retail chain Kohl’s released its third-quarter earnings on Thursday before the market opened. Shares were up more than 8.7% during the pre-market session.

  • Revenue: $4.6 billion
  • EPS: $1.65
  • Net Income: $243 million
Earning Highlights 
  • Net sales increased 16% versus Q3 2020  
  • Gross margin increased 408 bps compared to last year driven primarily through our inventory management efforts and pricing and promotion optimization strategies 
  • SG&A expense increased 6% in Q3 and leveraged 273 bps as a percentage of revenue compared to last year driven by improved store labor productivity and marketing and technology efficiency  
  • Operating margin of 8.4% in Q3 2021, the highest Q3 operating margin in 9 years  
  • Diluted earnings per share of $1.65 compared to an adjusted diluted EPS1 of $0.01 in Q3 2020  
  • Inventory increased 1% versus prior year and inventory turn reached another 10-year high 
Earnings Call
Analysts Estimates 

Analysts had estimated the company’s earnings per share for this quarter to stand at $0.64, while the revenue was estimated to be $4.27 billion. Kohl’s topped the estimates as the sales of the clothes and makeup increased.

Earnings History  

The company has continuously broken the estimates in the past few quarters. In the previous quarter, the EPS estimated was $1.21, but the actual EPS stood at $2.48 with a surprise of 105.00%.

Earnings Forecast 

The earning for the fourth quarter is estimated to come at $1.93 per share, while the revenue is expected to be $6.38 billion.

Recently, Kohl’s entered into a partnership with Reese Witherspoon’s Draper James. The company will supply Draper James RSVP into 500 Kohl’s stores this spring.

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