Investing.com – Kohl's stock (NYSE:KSS) rose nearly 8% Thursday as the retailer revised its guidance and expanded its share repurchase program.
Net sales are now expected to increase in the low-20s percentage range compared to the previous expectation of mid-to-high teens percentage range.
Adjusted earnings per share is now seen between $5.80 and $6.10, compared to the previous expectation of $3.80 to $4.20.
Kohl’s said it will buy back shares worth $500 million to $700 million, higher than the $200 million to $300 million amount it previously planned to buy.
The company kept a tight leash on its operating expenses during the second quarter and as a result, their share, as a percentage of total revenue, fell 290 basis points. One basis point is one-hundredth of a percentage.
Kohl’s cut spending on technology, tightly managed inventories, raised prices and got more bang for its buck from spending on promotions to improve its margins.
The company expanded its portfolio of digital brands that drove an increase in online sales.
Total revenue in the second quarter was 30% higher at $4.44 billion. As sales rose and expenses remained in control, the company returned to profits which came in at $382 million compared to a loss of $39 million on adjusted basis.
Adjusted profit per share on diluted basis was $2.48 and easily surpassed the analysts’ estimate of $1.17.