Kohl’s topped its own expectations when it came to its fiscal 2021 performance, and it plans do even better in 2022, according to a Tuesday (March 1) press release regarding its earnings for the full year and fourth quarter, which ended Jan. 29.
After nearing $6.5 billion in Q4 sales and closing in on $19.5 billion in sales for the year, with net sales increases of 5.8% and 22.9%, respectively, Kohl’s said in the release that 2022 net sales are likely to increase 2% to 3% compared to its record-setting last 12 months.
The company also plans to spend about $850 million in capital expenditures, including the expansion of its partnership with Sephora and refreshing stores across the department store retail chain, according to the release.
“In 2021, we delivered all-time record earnings per share, significantly ahead of our expectations,” said Kohl’s CEO Michelle Gass in the release. “Our operating margin of 8.6% exceeded our 2023 goal two years ahead of plan, a direct result of our efforts to restructure the business to be more profitable. We remain extremely confident in the future growth and cash flow generation of our business, and in 2022 will build on our momentum as we further scale key initiatives such as Sephora.”
Kohl’s leadership has repeatedly rejected a push by New York-based hedge fund Engine Capital to either sell the company or separate its eCommerce business.
Read more: Kohl’s Urged to Sell Company or Spin off eCommerce Business
Gass said in the release the company will give more details about its plans for fiscal 2022 during Investor Day Monday (March 7). That includes repurchasing at least $1 billion in company shares.
“We continue to see a lot of value in our company,” she said in the release.
In February, Kohl’s announced 400 stores across 36 states from Alaska to Maine that will house Sephora at Kohl’s shops by the end of this year, bringing the number of Sephora at Kohl’s stores to 600. The company plans to open 850 such stores by 2023.
See more: Kohl’s Opening 400 Sephora at Kohl’s Shops This Year
Sephora at Kohl’s features a 2,500-square-foot immersive beauty experience with makeup, skincare, hair and fragrance brands and clean beauty and self-care products. It brings more than 100 brands to 65 million U.S. Kohl’s customers.