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Kohl's Corporation (KSS - Free Report) pulled up its guidance for fiscal 2021 yet again, on posting spectacular second-quarter fiscal 2021 results. During the quarter, both top and bottom lines advanced year over year and came in ahead of their respective Zacks Consensus Estimate.
The company’s record results reflect better-than-anticipated sales and margins. Management is impressed with its strategic progress, as well as the ongoing prospects. The company further stated that it is on track to launch various transformational alliances to fuel growth. The company’s raised view keeps it well placed to achieve a number of its 2023 strategic targets this year, much ahead of its plan. Management also ramped up buyback activity, reflecting confidence in its business, as well as commitment toward shareholders.
Quarter in Detail
Kohl's posted adjusted earnings of $2.48 per share, which reversed significantly from a loss of 25 cents reported in the year-ago period. The bottom line also crushed the Zacks Consensus Estimate of $1.30 per share.
Kohls Corporation Price, Consensus and EPS Surprise
Total revenues came in at $4,447 million, up 30.5% from the prior-year quarter’s levels. The metric surpassed the Zacks Consensus Estimate of $4,201 million. Net sales jumped 31.4% in the quarter to $4,223 million.
Gross margin expanded considerably from 33.1% to 42.5% during the reported quarter. SG&A expenses increased 18.2% to $1,241 million. As a percentage of total revenues, SG&A expenses declined to 27.9% in the quarter from the prior-year quarter’s 30.8%. The company reported an operating income of $570 million, much higher than the year-ago period figure of $118 million.
Image Source: Zacks Investment Research
Other Financial Details
Kohl’s ended the quarter, with cash and cash equivalents of $2,569 million, long-term debt of $1,909 million and shareholders’ equity of $5,219 million. The company generated net cash from operating activities of $1,692 million during the six-month period ended Jul 31, 2021.
During the quarter, Kohl’s repurchased shares worth $255 million. Management plans to make share buybacks of $500-$700 million in 2021.
On Aug 10, the company declared a quarterly cash dividend of 25 cents per share, which is payable on Sep 22 to shareholders of record as of Sep 8.
Outlook
A robust second-quarter show encouraged the Zacks Rank #1 (Strong Buy) company to raise its guidance for fiscal 2021. Management now expects net sales to grow in the low-twenties range. Earlier, the company had anticipated the metric to grow in mid-to-high teens percentage rate.
Operating margin is now likely to be 7.4-7.6%, up from the previous expectation of 5.7-6.1%. Finally, Kohl’s now envisions adjusted earnings per share in the range of $5.80-$6.10 compared with the $3.80-$4.20 anticipated before.
Shares of Kohl’s have surged a whopping 175.3% in the past year compared with the industry’s growth of 228.1%.
Image: Bigstock
Kohl's (KSS) Q2 Earnings & Sales Beat Estimates, View Raised
Kohl's Corporation (KSS - Free Report) pulled up its guidance for fiscal 2021 yet again, on posting spectacular second-quarter fiscal 2021 results. During the quarter, both top and bottom lines advanced year over year and came in ahead of their respective Zacks Consensus Estimate.
The company’s record results reflect better-than-anticipated sales and margins. Management is impressed with its strategic progress, as well as the ongoing prospects. The company further stated that it is on track to launch various transformational alliances to fuel growth. The company’s raised view keeps it well placed to achieve a number of its 2023 strategic targets this year, much ahead of its plan. Management also ramped up buyback activity, reflecting confidence in its business, as well as commitment toward shareholders.
Quarter in Detail
Kohl's posted adjusted earnings of $2.48 per share, which reversed significantly from a loss of 25 cents reported in the year-ago period. The bottom line also crushed the Zacks Consensus Estimate of $1.30 per share.
Kohls Corporation Price, Consensus and EPS Surprise
Kohls Corporation price-consensus-eps-surprise-chart | Kohls Corporation Quote
Total revenues came in at $4,447 million, up 30.5% from the prior-year quarter’s levels. The metric surpassed the Zacks Consensus Estimate of $4,201 million. Net sales jumped 31.4% in the quarter to $4,223 million.
Gross margin expanded considerably from 33.1% to 42.5% during the reported quarter. SG&A expenses increased 18.2% to $1,241 million. As a percentage of total revenues, SG&A expenses declined to 27.9% in the quarter from the prior-year quarter’s 30.8%. The company reported an operating income of $570 million, much higher than the year-ago period figure of $118 million.
Image Source: Zacks Investment Research
Other Financial Details
Kohl’s ended the quarter, with cash and cash equivalents of $2,569 million, long-term debt of $1,909 million and shareholders’ equity of $5,219 million. The company generated net cash from operating activities of $1,692 million during the six-month period ended Jul 31, 2021.
During the quarter, Kohl’s repurchased shares worth $255 million. Management plans to make share buybacks of $500-$700 million in 2021.
On Aug 10, the company declared a quarterly cash dividend of 25 cents per share, which is payable on Sep 22 to shareholders of record as of Sep 8.
Outlook
A robust second-quarter show encouraged the Zacks Rank #1 (Strong Buy) company to raise its guidance for fiscal 2021. Management now expects net sales to grow in the low-twenties range. Earlier, the company had anticipated the metric to grow in mid-to-high teens percentage rate.
Operating margin is now likely to be 7.4-7.6%, up from the previous expectation of 5.7-6.1%. Finally, Kohl’s now envisions adjusted earnings per share in the range of $5.80-$6.10 compared with the $3.80-$4.20 anticipated before.
Shares of Kohl’s have surged a whopping 175.3% in the past year compared with the industry’s growth of 228.1%.
More Solid Retail Picks
Dillard’s (DDS - Free Report) , sporting a Zacks Rank #1, has a long-term earnings growth rate of 24.3%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Macy’s (M - Free Report) , with a Zacks Rank #1, has a long-term earnings growth rate of 12%.
Dollar General (DG - Free Report) , with a Zacks Rank #2 (Buy), has a long-term earnings growth rate of 11.3%.