Kohl’s shares jumped 5 percent in premarket trading Tuesday after the company reported better-than-expected earnings and sales during the crucial holiday shopping season.
Sales at stores open for at least 12 months were also surprisingly improved, rising 1 percent during the fiscal fourth quarter ended Feb. 2 over the same period the previous year. Analysts expected a 0.3 percent increase in comparable store sales.
“With a clear focus on driving traffic and operating with discipline, the company is delivering sales growth while also improving profitability,” Kohl’s CEO Michelle Gass said in a press release.
Here’s how the company did compared with what Wall Street expected:
- Adjusted earnings: $2.24 per share vs. $2.18 per share forecast by Refinitiv
- Revenue: $6.823 billion vs. $6.579 billion forecast by Refinitiv
On an unadjusted basis, the company’s profit slid 42 percent to $272 million, or $1.67 a share, from $468 million, or $2.81 a share, during the same quarter in 2017.
The company paid off $413 million in bonds during the quarter, taking a $21 million loss to extinguish outstanding debt. Overall, Kohl’s said it reduced its outstanding debt by over $900 million dollars last year and extended the deadlines to repay the rest of its bonds by an extra two years, which it said will cut its annual interest payments by approximately $45 million.
The retailer said it expects earnings per share for 2019 between $5.80 and $6.15 per share. Analysts were expecting $5.77 per share.