Kohl’s reports strong earnings

Kohl’s fourth quarter net sales decreased 1.1 percent to 5.7 billion dollars and comparable sales decreased 4.3 percent; while fiscal year 2023 net sales decreased 3.4 percent to 16.6 billion dollars and comparable sales decreased 4.7 percent.

However, the company reported fourth quarter net income was 186 million dollars or 1.67 dollars per diluted share and 2023 net income of 317 million dollars or 2.85 dollars per diluted share.

Commenting on the trading update, Tom Kingsbury, Kohl’s chief executive officer, said: “The early success of our strategies is evident. Our store business had its best comparable sales performance since 2010, Sephora at Kohl’s continued to drive meaningful beauty sales growth, and we managed inventory down 10 percent at year end.”

Fourth quarter gross margin was 32.4 percent, an increase of 937 basis points, operating income was 299 million dollars.. As a percentage of total revenue, operating income was 5 percent, an increase of 1,005 basis points year-over-year.

For the fiscal year 2024, the company expects a net sales range between a decrease of 1 percent to an increase of 1 percent. Comparable sales: In the range of 0 to 2 percent. Operating margin in the range of 3.6 percent to 4.1 percent and diluted EPS in the range of 2.10 dollars to 2.70 dollars.

On February 28, 2024, Kohl’s board of directors declared a quarterly cash dividend of 50 cents per share payable April 3, 2024 to shareholders of record at the close of business on March 20, 2024.