Kohl’s (NYSE: KSS) trudged lower on Thursday, after reporting fourth-quarter earnings and revenue that beat analysts' expectations, fueled by strong sales growth and tight controls over its inventory.
The company said it trimmed excess inventory by 7% in 2017, which boosted profit margins and created an overall cleaner shopping experience in stores.
Earnings per share came in at $1.99, adjusted, vs. $1.77 estimated. Revenue was $6.78 billion vs. $6.74 billion estimated. Same-store sales: growth of 6.3% vs. an increase of 5.7% expected.
Said CEO Kevin Mansell, "We improved our merchandise margins through strong inventory management and improved promotional and permanent markdowns. All areas [of Kohl's] effectively managed their expenses."
The company's net income rose to $468 million, or $2.81 a share, compared with $252 million, or $1.44 per share, a year ago. Kohl's said new tax legislation boosted its profits by $136 million.
Excluding one-time items, Kohl's earned $1.99 a share, which was 22 cents ahead of analysts' expectations. Fourth-quarter revenues climbed 9.2% to $6.78 billion, while analysts were calling for sales of $6.74 billion.
Same-store sales were up more than 6%, again surpassing analysts' expectations. During the same period last year, Kohl's same-store sales were down 2.2%.
Looking to fiscal 2018, Kohl's is calling for same-store sales to be flat to up 2%, while total revenue is expected either to lose 1% or gain 1%. Earnings for the year should fall within a range of $4.95 to $5.45 a share
Shares in KSS started Thursday down $2.37, or 4.4%, to $63.20
