Kohl's Reports First Quarter Fiscal 2021 Financial Results
Kohl's Corporation (NYSE:KSS) reported strong results for the quarter ended May 1, 2021, with total revenue of $3,887 million, a significant increase of 60.1% from $2,428 million in 2020. Net income surged to $14 million from a loss of $541 million, achieving a diluted EPS of $0.09. The adjusted diluted EPS improved to $1.05, up from a loss of $3.22 in the prior year. The company raised its 2021 guidance, expecting net sales to grow in the mid-to-high teens percentage range and adjusted EPS between $3.80 to $4.20. A quarterly dividend of $0.25 per share was declared, payable on June 23, 2021.
- Total revenue increased by 60.1% year-over-year.
- Net income improved to $14 million from a loss of $541 million.
- Diluted EPS turned positive at $0.09 compared to a loss of $3.52.
- Raised 2021 net sales guidance to mid-to-high teens percentage increase.
- Increased adjusted EPS guidance to $3.80 to $4.20.
- Selling, general, and administrative expenses rose by 9.8%.
Kohl’s Corporation (NYSE:KSS) today reported results for the quarter ended May 1, 2021.
|
Three Months |
||||||||||
($ in millions, except per share data) |
2021 |
2020 |
Change |
||||||||
Total revenue |
$ |
3,887 |
|
$ |
2,428 |
|
|
60 |
. |
||
Net sales(1) |
|
69.5 |
% |
|
(43.5 |
)% |
|
|
|
||
Gross margin |
|
39.0 |
% |
|
17.3 |
% |
2,173 bps |
|
|||
Selling, general, and administrative expenses |
$ |
1,170 |
|
$ |
1,066 |
|
|
9.8 |
% |
||
Reported |
|
|
|
|
|
|
|
|
|
||
Net income (loss) |
$ |
14 |
|
$ |
(541 |
) |
|
100 |
%+ |
||
Diluted earnings (loss) per share |
$ |
0.09 |
|
$ |
(3.52 |
) |
|
100 |
%+ |
||
Non-GAAP(2) |
|
|
|
|
|
|
|
|
|
||
Adjusted net income (loss) |
$ |
165 |
|
$ |
(495 |
) |
|
100 |
%+ |
||
Adjusted diluted earnings (loss) per share |
$ |
1.05 |
|
$ |
(3.22 |
) |
|
100 |
%+ |
||
(1) |
Represents change in Net sales vs. prior year period. |
(2) |
Excludes Loss on extinguishment of debt and Impairments, store closing, and other costs. |
“We are very pleased with our strong start to 2021 with both sales and earnings materially exceeding expectations. Along with a favorable consumer spending backdrop, we continue to see our key strategic initiatives gain traction and resonate with customers. We saw momentum build through the quarter, especially in our stores where we continue to elevate the experience. We are eagerly preparing for the upcoming launch of our Sephora partnership as well as the introduction of several new exciting brands this fall,” said Michelle Gass, Kohl’s chief executive officer.
“We are positioned to capitalize on growth opportunities during the balance of 2021 and remain firmly on track to achieving our 2023 strategic goals. Based on our first quarter results, we are raising our full year 2021 guidance,” said Gass.
Updated 2021 Financial Outlook
The Company is raising its full year 2021 financial outlook to include the following:
- Net sales is now expected to increase in the mid-to-high teens percentage range compared to the previous expectation of mid-teens percentage rate increase
-
Operating margin is now expected to be in the range of
5.7% to6.1% compared to the previous expectation of4.5% to5.0% -
Adjusted earnings per share is now expected to be in the range of
$3.80 t o$4.20 , excluding any non-recurring charges, compared to the previous expectation of$2.45 t o$2.95
Dividend
On May 12, 2021, Kohl's Board of Directors declared a quarterly cash dividend on the Company's common stock of
First Quarter 2021 Earnings Conference Call
Kohl's will host its quarterly earnings conference call at 9:00 am ET on May 20, 2021. A webcast of the conference call and the related presentation materials will be available via the Company's web site at investors.kohls.com, both live and after the call.
Cautionary Statement Regarding Forward-Looking Information and Non-GAAP Measures
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. The Company intends forward-looking terminology such as “believes,” “expects,” “may,” “will,” “should,” “anticipates,” “plans,” or similar expressions to identify forward-looking statements. Such statements are subject to certain risks and uncertainties, which could cause the Company's actual results to differ materially from those anticipated by the forward-looking statements. These risks and uncertainties include, but are not limited to, risks described more fully in Item 1A in the Company's Annual Report on Form 10-K, which is expressly incorporated herein by reference, and other factors as may periodically be described in the Company's filings with the SEC. Forward-looking statements relate to the date initially made, and Kohl’s undertakes no obligation to update them.
In this press release, the Company provides information regarding adjusted net income (loss) and adjusted diluted earnings (loss) per share, which are not recognized terms under U.S. generally accepted accounting principles (“GAAP”) and do not purport to be alternatives to net income as a measure of operating performance. A reconciliation of adjusted net income (loss) and adjusted diluted earnings (loss) per share is provided in this release. The Company believes that the use of these non-GAAP financial measures provides investors with enhanced visibility into its results with respect to the impact of certain costs. Because not all companies use identical calculations, these presentations may not be comparable to other similarly titled measures of other companies.
About Kohl's
Kohl’s (NYSE: KSS) is a leading omnichannel retailer. With more than 1,100 stores in 49 states and the online convenience of Kohls.com and the Kohl's App, Kohl's offers amazing national and exclusive brands at incredible savings for families nationwide. Kohl’s is uniquely positioned to deliver against its strategy and its vision to be the most trusted retailer of choice for the active and casual lifestyle. Kohl’s is committed to progress in its diversity and inclusion pledges, and the company's environmental, social and corporate governance (ESG) stewardship. For a list of store locations or to shop online, visit Kohls.com. For more information about Kohl’s impact in the community or how to join our winning team, visit Corporate.Kohls.com or follow @KohlsNews on Twitter.
KOHL’S CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) |
||||||
|
Three Months Ended |
|||||
(Dollars in Millions, Except per Share Data) |
May 1, 2021 |
May 2, 2020 |
||||
Net sales |
$ |
3,662 |
|
$ |
2,160 |
|
Other revenue |
|
225 |
|
|
268 |
|
Total revenue |
|
3,887 |
|
|
2,428 |
|
Cost of merchandise sold |
|
2,233 |
|
|
1,787 |
|
Gross margin rate |
|
39.0 |
% |
|
17.3 |
% |
Operating expenses: |
|
|
|
|
|
|
Selling, general, and administrative |
|
1,170 |
|
|
1,066 |
|
As a percent of total revenue |
|
30.1 |
% |
|
43.9 |
% |
Depreciation and amortization |
|
211 |
|
|
227 |
|
Impairments, store closing, and other |
|
— |
|
|
66 |
|
Operating income (loss) |
|
273 |
|
|
(718 |
) |
Interest expense, net |
|
67 |
|
|
58 |
|
Loss on extinguishment of debt |
|
201 |
|
|
— |
|
Income (loss) before income taxes |
|
5 |
|
|
(776 |
) |
(Benefit) provision for income taxes |
|
(9 |
) |
|
(235 |
) |
Net income (loss) |
$ |
14 |
|
$ |
(541 |
) |
Average number of shares: |
|
|
|
|
|
|
Basic |
|
154 |
|
|
154 |
|
Diluted |
|
156 |
|
|
154 |
|
Earnings (loss) per share: |
|
|
|
|
|
|
Basic |
$ |
0.09 |
|
$ |
(3.52 |
) |
Diluted |
$ |
0.09 |
|
$ |
(3.52 |
) |
ADJUSTED NET INCOME (LOSS) AND DILUTED EARNINGS (LOSS) PER SHARE, NON-GAAP FINANCIAL MEASURES (Unaudited) |
||||||
(Dollars in Millions, Except per Share Data) |
Three Months Ended |
|||||
May 1, 2021 |
|
May 2, 2020 |
|
|||
Net income (loss) |
|
|
|
|
|
|
GAAP |
$ |
14 |
|
$ |
(541 |
) |
Impairments, store closing, and other |
|
— |
|
|
66 |
|
Loss on extinguishment of debt |
|
201 |
|
|
— |
|
Income tax impact of items noted above |
|
(50 |
) |
|
(20 |
) |
Adjusted (non-GAAP) |
$ |
165 |
|
$ |
(495 |
) |
Diluted earnings (loss) per share |
|
|
|
|
|
|
GAAP |
$ |
0.09 |
|
$ |
(3.52 |
) |
Impairments, store closing, and other |
|
— |
|
|
0.43 |
|
Loss on extinguishment of debt |
|
1.29 |
|
|
— |
|
Income tax impact of items noted above |
|
(0.33 |
) |
|
(0.13 |
) |
Adjusted (non-GAAP) |
$ |
1.05 |
|
$ |
(3.22 |
) |
KOHL’S CORPORATION CONSOLIDATED BALANCE SHEETS (Unaudited) |
||||||
(Dollars in Millions) |
May 1, 2021 |
May 2, 2020 |
||||
Assets |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
$ |
1,609 |
|
$ |
2,039 |
|
Merchandise inventories |
|
2,667 |
|
|
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FAQ
What are Kohl's Q1 2021 earnings results?
Kohl's reported total revenue of $3,887 million, net income of $14 million, and diluted EPS of $0.09 for Q1 2021.
How did Kohl's financial outlook change for 2021?
Kohl's raised its full year 2021 guidance, anticipating net sales growth in the mid-to-high teens percentage range and adjusted EPS of $3.80 to $4.20.
When will Kohl's pay its next dividend?
Kohl's declared a quarterly cash dividend of $0.25 per share, payable on June 23, 2021.
What is the significance of Kohl's partnership with Sephora?
Kohl's is preparing for the launch of its Sephora partnership, which is expected to enhance customer experience and drive sales.
Kohls Corporation
NYSE:KSSKSS RankingsKSS Latest NewsKSS Stock Data
1.66B
109.49M
1.58%
127.26%
31.91%
Department Stores
Retail-department Stores
United States of America
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