Kohl’s easily beat a Wall Street earnings per share estimate for the third quarter as digital sales gained even if revenues overall slid in a retail market disrupted by the continuing coronavirus pandemic.
The company reported a net loss of $12 million, or eight cents per diluted share, versus net income of $123 million, or 78 cents per diluted share, in the period a year earlier.
Adjusted for one-time events, net income was $2 million, or one cent per diluted share, versus $116 million, or 74 cents per diluted share, in the year-prior period. Kohl’s adjusted diluted earnings topped a third quarter MarketBeat-published analyst consensus estimate of a 46 cents per share loss.
Comparable sales slipped 13.3% in the quarter year over year. Third quarter digital sales gained 25% versus the period a year past, according to Kohl’s.
Net sales were $3.78 billion and total revenues were $3.98 billion, versus $4.36 billion and $4.63 billion, respectively, in the year-before period. Operating income was $22 million versus $204 million in the period a year previous.
Michelle Gass, Kohl’s CEO, said, “Our third quarter results exceeded our expectations with significant sequential sales and profitability improvement. Digital sales growth remained strong and our actions to improve our gross margin showed great progress. We also further strengthened our financial position and fully repaid our revolver during the period, which underscores the solid cash flow generation of our business. We entered the holiday season well-positioned and prepared to serve our customers with more omnichannel conveniences in place to deliver the great experience they always expect from Kohl’s. As we look ahead, we are incredibly focused on executing against our new strategic framework, which represents our greatest opportunity to drive long-term sales and profit growth and create shareholder value in the coming years. In addition, through disciplined capital management, we plan to reinstate a dividend during the first half of 2021.”