Source: Dreamstime
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On Thursday, the popular U.S. retail chain noted that it expects to face additional costs and supply chain disruptions this year – news that led to an immediate 12% slump in its stock.
Financial performance for Q1 2021
“Good growth was always inevitable given the terrible results of last year. While the company is on a steep recovery trajectory, it has not fully dug itself out of the hole that the pandemic created.”
Neil Saunders, Retail Managing Director of GlobalData
According to analysts, Kohl’s shares shared a similar fate to those of Walmart and Lowe’s, which also shaved some of their value amid investor concerns that the pandemic-fueled market demand would crumble once the final stimulus checks have been spent.
In addition, a quick comparison to Kohl’s financial performance for 2019 would reveal that, although exceeding expectations, the retail chain’s quarterly performance by no means matches the company’s pre-pandemic revenues.
Here are the main financial highlights from Kohl’s Q1 2021 earnings release:
– Revenue: $3.89 billion vs. expectations for $3.48 billion (up nearly 70%)
– Net income: $14 million vs. a net loss of $541 million a year earlier
– Earnings per share: $1.05 adjusted vs. expectations for 4 cents
– Store sales: sales have more than doubled during the quarter, with digital sales enjoying a 14% year-over-year growth and representing 30% of the total sales.
According to Kohl’s Chief Executive Michelle Gass, in the quarter the business has gained some momentum due to the investments made in new private label brands, sports clothing collections, as well as women’s apparel and beauty products.
Forecast for 2021
“The U.S. consumer is in a stronger position [and] spending has picked up, driven by stimulus, easing Covid-19 restrictions and people resuming more normalcy in their daily lives. These factors are helping to reignite growth for the retail industry and we are positioned extremely well to capitalize on this acceleration.”
Michelle Gass, CEO
Kohl’s expects full-year adjusted earnings per share to range between $3.80 and $4.20, with net sales forecasted to rise to the mid-to-high teens percentage range. According to some estimations, this would mean that the retail chain is looking at sales of up to $17.89 billion. Even if that’s the case, however, this figure is still a billion short of matching the company’s performance for 2019.
Upcoming reports
See the full list of upcoming earnings reports for May 24-28 in the tables below.
Tuesday, May 25th 2021
| Region | Company | Fiscal period |
|---|---|---|
| USA | HEICO Corp | Q2 2021 |
| USA | Intuit Inc | Q3 2021 |
| USA | Urban Outfitters Inc | Q1 2022 |
Wednesday, May 26th 2021
| Region | Company | Fiscal period |
|---|---|---|
| United Kingdom | British Land Company PLC | Full Year 2021 |
| United Kingdom | SSE PLC | Full Year 2021 |
| USA | Agilent Technologies Inc | Q2 2021 |
Thursday, May 27th 2021
| Region | Company | Fiscal period |
|---|---|---|
| USA | Gap Inc | Q1 2021 |
| USA | Costco Wholesale Corp | Q3 2021 |
| USA | HP Inc | Q2 2021 |
| USA | Box Inc | Q1 2022 |
| USA | VMware Inc | Q1 2022 |
| USA | Autodesk Inc | Q1 2022 |
| USA | Salesforce.Com Inc | Q1 2022 |
| USA | Best Buy Co Inc | Q1 2022 |
| USA | Dollar Tree Inc | Q1 2021 |
| USA | Dollar General Corp | Q1 2021 |
| Ireland | Medtronic PLC | Q4 2021 |
| United Kingdom | Johnson Matthey PLC | Full Year 2021 |
| United Kingdom | United Utilities Group PLC | Full Year 2021 |
| Austria | EVN AG | Half Year 2021 |
| USA | NVIDIA Corp | Q1 2022 |
Friday, May 28th 2021
| Region | Company | Fiscal period |
|---|---|---|
| USA | Dell Technologies Inc | Q1 2022 |
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