CNBC Television published this video item, entitled “Kohl’s is focused on creating shareholder value: CEO” – below is their description.
CNBC’s Courtney Reagan talks to Kohl’s CEO Michelle Gass about the company’s outlook, improving profitability, activist investors and the company’s focus on creating shareholder value. For access to live and exclusive video from CNBC subscribe to CNBC PRO: https://cnb.cx/2NGeIvi
Kohl’s on Tuesday reported fourth-quarter earnings and sales that topped analysts’ estimates, and pointed to stronger growth in 2021.
Facing pressure from activist investors, the company said it will reinstate its dividend and buy back shares.
With its sales strained by the pandemic, Kohl’s has been working to drive more shoppers online, and add brands that sell home accessories, fitness gear and makeup to lure new customers. It’s also been trying to cut costs and trim inventories, and these efforts have helped improve profits.
“After an extraordinary year managing through the pandemic, we ended the year in a very solid financial position, and we enter 2021 with strong momentum,” Chief Executive Michelle Gass said in a statement.
Kohl’s shares were rising nearly 2% by midday.
Here’s how the company did during the quarter ended Jan. 30 compared with what analysts were expecting, using a Refinitiv survey:
Earnings per share: $2.22 adjusted vs. $1.01 expected
Revenue: $5.88 billion vs. $5.86 billion expected
Kohl’s reported net income of $343 million, or $2.20 per share, compared with $265 million, or $1.72 a share, a year earlier. Excluding one-time charges, the company earned $2.22 per share, topping the $1.01 forecast by analysts.
Sales fell to $5.88 billion from $6.54 billion a year earlier, topping the $5.86 billion forecast by analysts.
Online sales jumped 22% from a year earlier and accounted for 42% of its total sales.
Two of Kohl’s in-house apparel brands — a comfort line for women called Sonoma and a trendier teen-focused line called So — grew year over year during the quarter, Gass told CNBC in a phone interview.
Recent tie-ups to bring merchandise from Land’s End, Eddie Bauer and Calvin Klein into stores are further helping to stir up excitement and give people a reason to visit Kohl’s, she said.
Kohl’s also saw a boost in stores in early January, as people visited the retailer to return holiday items bought on Amazon, and picked up something else during the trip, Gass explained. Kohl’s stores nationwide offer an outpost to accept Amazon returns.
The company said at least 2 million new customers shopped at Kohl’s last year because of its Amazon returns service, a third of which are millennials.
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