Kohl’s (NYSE: KSS) on Tuesday reported first-quarter earnings that beat expectations on the top and bottom lines, boosted by its focus on driving foot traffic and more tightly controlling the goods it sells in its stores.
"We are very pleased with our strong start to fiscal 2018 as we continued to focus on our priorities of driving traffic and operational excellence," said Michelle Gass, Kohl's incoming CEO.
Earnings registered 64 cents per share vs. 50 cents per share forecast by Thomson Reuters. Revenue: $4.21 billion vs. $3.95 billion forecast. Same-store sales growth: 3.6% vs. 2.7% forecast.
Kohl's for the quarter reported net income of $75 million, or 45 cents a share, higher than the $66 million, or 39 cents a share, it reported a year ago.
Excluding $500 million in debt Kohl's paid down the past quarter, the company earned $107 million, or 64 cents a share, marking a 62 percent jump over the same quarter a year prior.
Kohl's raised its earnings forecast for the year, and now expects earnings of $5.05 to $5.50 per share, compared with previous expectations of $4.95 to $5.45 per share.
The retailer last year began a partnership with Amazon (NASDAQ: AMZN) to sell the online retailer's smart home products and accept its returns. Kohl's also announced a partnership with discount grocer Aldi to lease the vacant space left behind by its downsized stores. It plans more such partnerships down the road.
Shares in Kohl’s were down 38 cents to $65.09, early Tuesday.
