Kohl’s Sees Fourth-Quarter Sales Down Despite Lift From Digital

(Bloomberg) -- Kohl’s Corp. expects to report another sales decline in its fourth-quarter results next month, though heightened digital orders are giving the retailer a lift as it begins to recover from the pandemic.

Same-store sales fell 11% in the period ended Jan. 30, according to preliminary results revealed Thursday in a company statement. Total revenue fell about 10%, despite a gain in digital sales of more than 20%, Kohl’s said.

The performance is an improvement over the third quarter as Kohl’s also made progress against an earlier plan to boost profitability, Chief Executive Officer Michelle Gass said in the statement. “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.”

The mixed results highlight the challenges of operating retail stores in the pandemic. After a difficult 2020 marked by broad economic shutdowns, retailers were showing signs of recovery just as Covid-19 outbreaks flared up again in recent months.

The company also said it expects diluted earnings per share of $1 to $1.05, before accounting for an impact from tax planning strategies. Analysts anticipate adjusted earnings of 70 cents a share, according to the average estimate compiled by Bloomberg.

Kohl’s shares rose less than 1% in premarket trading in New York. The company said it will host a conference call for full fourth-quarter earnings on March 2.

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