Kohl’s (NYSE:KSS) on Thursday released preliminary fourth-quarter results.
Chief Executive Michelle Gass said digital sales represented more than 40% of net sales during the period, growing more than 20% year over year.
"Our fourth-quarter performance exceeded our expectations across all key metrics with sales strengthening as we moved through the period," she said in a statement. "Our focus on gross margin showed further traction and we managed expenses tightly, which together strengthened our financial position."
The department store chain said it expects fourth-quarter earnings per share to be in the range of $1.00 to $1.05, before considering any impact from tax planning strategies.
Kohl’s is set to report fourth-quarter results on March 2.
Fourth-quarter 2020 total revenue declined approximately 10%, including a comparable sales decrease of 11%. Based on this, the Company expects fourth quarter 2020 diluted earnings per share to be in the range of $1.00 to $1.05, before considering any impact from tax planning strategies.
These preliminary results reflect a better than expected gross margin rate and strong SG&A expense management. Gross margin continued to benefit from disciplined inventory management and further optimization in promotional strategies. SG&A expense decline was driven primarily by reductions in store, marketing, and technology expenses.
Gass continued, "As we carry this momentum into 2021, we are confident that our key strategic initiatives will accelerate our top line growth and expand our operating margin. Our partnership with Sephora will launch this Fall in 200 stores and online, commencing a multi-year buildout that will drive significant growth for Kohl’s."
KSS shares added 99 cents, or 2.1%, to $47.64.
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