NEW YORK — Kohl’s reported mixed results for its fiscal fourth quarter, delivering a 30% increase in profits but a 10% drop in sales.
Results, announced Tuesday, handily beat Wall Street estimates.
The Menomonee Falls, Wisconsin, company also issued a per-share range for the current year whose top range beat analysts’ expectations.
The earnings report comes out as Kohl’s is fighting back against an investor group’s efforts to take control of the department store chain’s board, arguing that it would derail its progress and momentum.
The investor group had said it had nominated nine members for Kohl’s board of directors as it looks to boost the company’s stock and its financial performance. The group owns a 9.5% stake in Kohl’s.
Late last year, the department store chain announced late last year that Sephora will be replacing all cosmetics areas at Kohl’s with 2,500 square foot shops, starting with 200 locations in the fall of year. It will expand to at least 850 stores by 2023.
Kohl’s said Tuesday it earned $343 million, or $2.20 per share, for the quarter ended Jan. 30. That compares with $265 million, or $1.72 per share, in the year-ago period. Adjusted earnings was $2.22, well ahead of the $1.01 per share that analysts forecast, according to FactSet.
Sales reached $6.14 billion, down from $6.83 billion in the year-ago period. But results surpassed the $5.88 billion that analysts had expected, according to FactSet.
Kohl’s expects net sales for the current year to increase in the mid-teens percentage range. The company also forecasts that per share range should be anywhere from $2.45 to $2.95 for the year. Analysts forecast $2.65 per share, according to FactSet.
Shares rose 1%, or 50 cents, to $57.50.
Anne D’Innocenzio, The Associated Press