11 Jan Kohl’s Lifts Guidance On Strong Holiday Comps
Kohl’s Corp. reported that its total and comparable sales for November and December 2017 combined increased 6.9 percent over the same period last year.
Kevin Mansell, Kohl’s chairman, chief executive officer and president, said, “We are very pleased with our Holiday period sales, which were consistently strong through November and December. All lines of business and all regions reported positive comp sales. As expected, growth in digital demand accelerated significantly in the Holiday period from the year-to-date trend. In addition, we experienced positive sales in our stores driven by stronger traffic. I’d like to thank every Kohl’s associate across the organization for their commitment to delivering an outstanding Holiday experience for our customers.”
Based on stronger than expected Holiday sales and expectations for fiscal January, the company now expects its fiscal 2017 diluted earnings per share to be $4.10 to $4.20 versus its previous guidance of $3.72 to $3.92. Excluding the company’s previously disclosed fourth quarter tax settlement of $30 million, diluted earnings per share is expected to be $3.98 to $4.08, compared to its prior guidance of $3.60 to $3.80.
The company continues to expect its fiscal 2017 gross margin rate to be higher than the prior year and its SG&A, including the 53rd week, to increase at the high end of its prior guidance of 0.5 percent – 2.0 percent.
The company’s guidance does not include the impact of recent changes in federal tax legislation which are expected to have a positive impact on the company’s effective tax rate and generate a favorable non-cash tax benefit related to the re-measurement of deferred tax balances in 2017.
Fourth Quarter Earnings Release and Conference Call
On March 1, 2018, the company will release its fourth quarter and fiscal 2017 results at 7:00 am ET and host its quarterly earnings conference call at 8:30 am ET.