US department store chain Kohl’s Corp has predicted above-expectation 2022 sales and profits on the back of faster shipments and the introduction of customer-favourite brands from Calvin Klein to Tommy Hilfiger.
The results, as well as positive earnings from rival Macy’s Inc signal optimism for the sector after a tough 2021 when supply chain logjams and the Covid-19 crisis sapped sales. Shares of Kohl’s rose four per cent in pre-market trading as it also unveiled a $3bn share buyback and doubled its dividend after surpassing holiday-quarter profit expectations.
The apparel, jewellery and fragrances retailer, which has over 1,100 stores across the US, has offered lower promotions and limited some of its weaker private label brands to shield profits from soaring freight expenses.
It has launched Sephora stores at its outlets and introduced perennially popular brands – also including Cole Haan and Eddie Bauer – to draw in more shoppers. The moves expanded its gross margin to 33.2 per cent in the quarter from 32 per cent a year earlier. It expects net sales to increase four per cent to three per cent in fiscal 2022, while analysts on average expected a rise of 2.2 per cent, according to IBES data from Refinitiv.
