Kohl’s Corp announced stronger-than-anticipated full-year profit projections for 2019, driven by strategic collaborations with Amazon and emerging brands. The retailer’s shares climbed 5.3% in pre-market trading following better-than-expected fourth-quarter results.
A 2017 photo of a Kohl’s store in Massachusetts underscores the company’s evolving retail approach. The firm reported same-store sales growth of 1% for the quarter ended February 2, outpacing the 0.3% analyst forecast. Analyst Brian Yarbrough of Edward Jones attributed the improvement to enhanced loyalty programs and Amazon integration.
Kohl’s expanded partnerships through initiatives like displaying Amazon Echo devices and Kindle e-readers in stores, alongside a Popsugar-branded clothing line. A Chicago location also partnered with Weight Watchers to boost kitchenware sales via wellness events.
Comparatively, Macy’s Inc. posted 0.7% same-store sales growth that fell short of expectations, while Target Corp saw a 5.3% increase. Kohl’s projected 2019 earnings of $5.80 to $6.15 per share, exceeding the $5.77 analyst average. CEO Michelle Gass emphasized the company’s financial stability and long-term growth outlook.
The firm plans to close four underperforming stores in April, replacing them with smaller formats. Excluding one-time items, Kohl’s earned $2.24 per share in the fourth quarter, surpassing the $2.18 analyst estimate.
