Kohl’s, the embattled operator of 1,100 department stores, said Tuesday (March 2) that its fourth quarter sales fell 10.1 percent, tempered by a 21 percent increase in its digital operations.
However, Kohl’s said it continued to shore up its financial position and concluded the quarter with $2.3 billion in cash. The department store retailer anticipates that full-year 2021 net sales will rise in the “mid-teens percentage range as compared to 2020,” operating margin to be between 4.5 percent and 5 percent and earnings per share to be between $2.45 and $2.95.
Kohl’s also said that it is restarting its capital allocation strategy in 2021, with the inclusion of bolstering capital expenditures, restarting its share repurchase program, implementing liability management strategies and instituting its dividend again. On Feb. 24, 2021, the company’s board of directors declared a 25-cent per share quarterly cash dividend. The dividend is payable March 31, 2021 to shareholders of record at the close of business on March 17, 2021.
“Our organization has continued to navigate through the pandemic successfully. Our business is gaining momentum and our strong cash generating model has proven resilient,” Kohl’s Chief Executive Officer Michelle Gass said on a call with analysts.
Gass said the trend toward “casualization and living actively” has been underway for a while and has accelerated with the pandemic. “Kohl’s is uniquely positioned to differentiate itself and address the active lifestyle needs of today’s families,” Gass said in the call.
“Looking ahead, I am extremely confident in our outlook. We are executing with a clear strategic plan to continue building on the momentum in our business with an intense focus on improving our profitability,” Gass said.
As for its overall financial results, Kohl’s reported $2.22 in adjusted diluted earnings per share on $6.1 billion in revenue. The department store retailer’s results exceeded analyst estimates of $1.01 in earnings per share on $5.86 billion in revenue.