Kohl’s characterized its second quarter as record-breaking as it beat Wall Street sales and earnings estimates.
Net income was $382 million, or $2.48 per diluted share, versus $47 million, or 30 cents per diluted share, in the year-earlier period. Adjusted for one-time events, net income was $382 million, or $2.48 per diluted share, versus a net loss of $39 million, or 25 cents per diluted share, in the quarter a year prior.
Kohl’s topped a Yahoo Finance-published analyst average adjusted diluted estimate of $1.16, beating on sales as well, where the estimate was $3.99 billion on average.
Total revenue was $4.45 billion versus $3.41 billion in the year-before quarter and net sales were $4.22 billion versus $3.21 billion, Kohl’s reported. Operating income was $570 million versus $118 million in the period a year previous.
In a conference call, Michelle Gass, Kohl’s CEO, emphasized that the company’s second-quarter earnings set a record, and pointed out that it was raising guidance for the year. She added that the company is preparing to launch partnerships to advance its aim of becoming the go-to retailer for active and casual lifestyles. Store activity drove financial gains, Gass said, in terms of sales growth and fulfillment contribution. Digital revenues reached 26% of total sales up from 20% in the quarter two years ago, even if down from last year’s figure for the period, which came in the depths of the COVID-19 pandemic. Top-performing merchandise categories in the quarter year over year were men’s, accessories and women’s while home, men’s and footwear led in a two-year period comparison.
In announcing the financial results, Gass said, “Our performance in the second quarter marked another important step in further establishing Kohl’s as the leading destination for the active and casual lifestyle. We delivered record second-quarter earnings with sales and margins materially exceeding expectations. As pleased as we are with our ongoing strategic progress, much of our opportunity is still ahead of us. We are on the eve of launching several transformational partnerships that will drive sustainable growth for years to come. Based on our results, we are raising our full-year 2021 guidance, which positions us to achieve many of our 2023 strategic goals this year, well ahead of our plan. In addition, we have accelerated our share repurchase activity, underscoring our confidence in the business and our commitment to creating shareholder value.”