Kohl’s Delivers Strong Q2 Results, Lifts Guidance for 2021

Shares of omnichannel retailer Kohl’s Corp. (KSS) climbed 4.6%, on the time of writing, in early commerce on Thursday, on the again of robust second-quarter 2021 outcomes. The corporate’s revenues and earnings surpassed the Road’s expectations on enchancment in gross sales.

Adjusted earnings of $2.48 per share surpassed analysts expectations of $1.11 per share. The corporate had reported a lack of $0.25 per share within the second quarter of 2020.

Kohl’s web gross sales of $4.22 billion exceeded the consensus estimates of $3.99 billion. Additional, the corporate’s high line climbed about 31.4% year-over-year.

Notably, the corporate was capable of preserve liquidity within the second quarter. Money & money equivalents stood at $2.6 billion, in comparison with $2.4 billion within the year-ago quarter.

Kohl’s repurchased $255 million shares through the reported quarter and seeks to purchase again a complete of $500 to $700 million shares in 2021. (See Kohl’s stock charts on TipRanks)

The CEO of Kohl’s, Michelle Gass, mentioned, “As happy as we’re with our ongoing strategic progress, a lot of our alternative remains to be forward of us. We’re on the eve of launching a number of transformational partnerships that can drive sustainable development for years to come back.”

Supported by an upbeat efficiency within the first half of 2021, Kohl’s has raised steerage for full-year 2021. The corporate expects its web gross sales to extend within the low-twenties share vary, up from mid-to-high teenagers share vary guided earlier. Additional, it anticipates EPS to be within the vary of $5.80 to $6.10 in opposition to the prior expectation of $3.80 to $4.20.

On August 9, Jefferies analyst Stephanie Wissink assigned a Purchase score to the inventory with a worth goal of $71 (upside potential of 34.3%).

Wissink mentioned, “We consider KSS’s gross sales, margin, and retailer expertise initiatives, along with the relative resilience of its off-mall actual property and a level of pent-up shopper purchasing demand, will drive a quicker and extra measurable EBITDA restoration than the market expects.”

The remainder of the Road is cautiously optimistic in regards to the inventory with a Average Purchase consensus score primarily based on 4 Buys and a pair of Holds. The average Kohl’s price target of $68.67 implies 29.2% upside potential.

KSS scores a 9 out of 10 on TipRanks’ Smart Score score system, suggesting that the inventory is prone to outperform market averages.

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