Kohl’s (KSS) reported better-than-expected earnings and gross margin for the fiscal fourth quarter.
Revenue for the quarter and guidance, on the other hand, missed expectations, resulting in a volatile premarket trade for its shares.
In FQ4 2023, Kohl’s generated earnings per share (EPS) of $1.67, versus the consensus estimate of $1.27. Revenue came in at $5.71 billion, short of the forecasted $5.8 billion.
The company's gross margin for the quarter was 32.4%, significantly higher than the previous year's 23% and above the expected 31.9%.
Looking ahead to fiscal year 2024, the department store chain projects EPS to be between $2.10 and $2.70, slightly below the consensus estimate of $2.61.
The company anticipates net sales could either decrease by 1% or increase by up to 1%, with comparable sales expected to range from 0% to 2%.
Operating margin is projected to be between 3.6% and 4.1%.
“Evolving our assortment and bringing more relevant product to the millions of customers we serve is a core focus as we continue to deliver on Kohl’s broader growth strategy,” said Tom Kingsbury, CEO of Kohl’s.
“We see significant opportunity in the baby gear category, and partnering with Babies“R”Us is another example of how we are finding new ways to optimize our assortment and further establish Kohl’s as the go-to brand for families.”
Kohl's (NYSE:KSS) also announced a strategic collaboration with WHP Global to launch BabiesRUs shops in selected stores beginning in August, with plans for a more extensive expansion in fall 2024.
This partnership will incorporate BabiesRUs branded areas in about 200 Kohl's stores, providing customers with a variety of baby products such as gear, furniture, and toys.