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Kohl's (KSS) Q1 Sales & Earnings Top Estimates, Increase Y/Y
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Kohl's Corporation (KSS - Free Report) posted first-quarter fiscal 2021 results, with the top and the bottom line beating Zacks Consensus Estimate as well as increasing year over year. Following the company’s robust first-quarter results, management is raising fiscal 2021 guidance.
During the quarter, the company benefited from favorable consumer spending backdrop. Also, its key strategic initiatives are yielding. The company witnessed robust momentum, especially in its stores during the quarter. Moreover, management is optimistic about the launch of its Sephora partnership.
Kohls Corporation Price, Consensus and EPS Surprise
Kohl's posted adjusted earnings of $1.05 per share. Notably, this compares unfavorably against adjusted loss of $3.22 per share reported in the year-ago quarter. Further, the Zacks Consensus Estimate for bottom line was pegged at a breakeven on a per share basis.
Total revenues came in at $3,887 million, up 60.1% from the prior-year quarter’s levels. Moreover, the metric surpassed the Zacks Consensus Estimate of $3,568.3 million. Net sales surged 69.5% in the quarter to 3,662.
Gross margin expanded 2,173 basis points to 39% in the quarter under review.
SG&A expenses increased 9.8% year over year to $1,170 million. Nevertheless, as a percentage of total revenues, SG&A expenses declined to 30.1% in the quarter from 43.9% in the prior-year quarter. The company reported operating income of $273 million against an operating loss of $718 million posted in the prior-year quarter.
Other Financial Details
Kohl’s ended the quarter, with cash and cash equivalents of $1,609 million, long-term debt of $1,909 million and shareholders’ equity of $5,117 million. Further, Kohl’s generated net cash from operating activities of $278 million during the three months ended May 1, 2021.
On May 12, the company declared a quarterly cash dividend of 25 cents per share, which is payable on Jun 23 to shareholders of record as of Jun 9.
Outlook
This Zacks Rank #1 (Strong Buy) company now expects net sales to grow in mid-to-high teens percentage rate. Earlier, the company had anticipated the metric to grow in the mid-teens percentage range. Operating margin is now likely to be 5.7-6.1%, higher than the previous expectation of 4.5-5%. Further, Kohl’s now envisions earnings per share in the range of $3.80-$4.20, excluding non-recurring charges. The company had previously projected the metric in the range of $2.45-$2.95.
Shares of the company have surged 48.1% so far this year compared with the industry’s growth of 66.2%.
Macys, Inc. (M - Free Report) , which sports a Zacks Rank #1, has a long-term earnings growth rate of 12%.
MarineMax, Inc. (HZO - Free Report) currently has an Earnings ESP of +4.86% and a Zacks Rank #1.
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Kohl's (KSS) Q1 Sales & Earnings Top Estimates, Increase Y/Y
Kohl's Corporation (KSS - Free Report) posted first-quarter fiscal 2021 results, with the top and the bottom line beating Zacks Consensus Estimate as well as increasing year over year. Following the company’s robust first-quarter results, management is raising fiscal 2021 guidance.
During the quarter, the company benefited from favorable consumer spending backdrop. Also, its key strategic initiatives are yielding. The company witnessed robust momentum, especially in its stores during the quarter. Moreover, management is optimistic about the launch of its Sephora partnership.
Kohls Corporation Price, Consensus and EPS Surprise
Kohls Corporation price-consensus-eps-surprise-chart | Kohls Corporation Quote
Q1 in Detail
Kohl's posted adjusted earnings of $1.05 per share. Notably, this compares unfavorably against adjusted loss of $3.22 per share reported in the year-ago quarter. Further, the Zacks Consensus Estimate for bottom line was pegged at a breakeven on a per share basis.
Total revenues came in at $3,887 million, up 60.1% from the prior-year quarter’s levels. Moreover, the metric surpassed the Zacks Consensus Estimate of $3,568.3 million. Net sales surged 69.5% in the quarter to 3,662.
Gross margin expanded 2,173 basis points to 39% in the quarter under review.
SG&A expenses increased 9.8% year over year to $1,170 million. Nevertheless, as a percentage of total revenues, SG&A expenses declined to 30.1% in the quarter from 43.9% in the prior-year quarter. The company reported operating income of $273 million against an operating loss of $718 million posted in the prior-year quarter.
Other Financial Details
Kohl’s ended the quarter, with cash and cash equivalents of $1,609 million, long-term debt of $1,909 million and shareholders’ equity of $5,117 million. Further, Kohl’s generated net cash from operating activities of $278 million during the three months ended May 1, 2021.
On May 12, the company declared a quarterly cash dividend of 25 cents per share, which is payable on Jun 23 to shareholders of record as of Jun 9.
Outlook
This Zacks Rank #1 (Strong Buy) company now expects net sales to grow in mid-to-high teens percentage rate. Earlier, the company had anticipated the metric to grow in the mid-teens percentage range. Operating margin is now likely to be 5.7-6.1%, higher than the previous expectation of 4.5-5%. Further, Kohl’s now envisions earnings per share in the range of $3.80-$4.20, excluding non-recurring charges. The company had previously projected the metric in the range of $2.45-$2.95.
Shares of the company have surged 48.1% so far this year compared with the industry’s growth of 66.2%.
More Solid Retail Picks
Dillards, Inc. (DDS - Free Report) , which sports 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.
Macys, Inc. (M - Free Report) , which sports a Zacks Rank #1, has a long-term earnings growth rate of 12%.
MarineMax, Inc. (HZO - Free Report) currently has an Earnings ESP of +4.86% and a Zacks Rank #1.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
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