Kohl’s projects robust sales outlook

Bloomberg

Kohl’s, under pressure by activist investors, gave an optimistic outlook for the year while reporting weaker-than-expected sales in the fourth quarter.
The company is expanding its venture with cosmetics chain Sephora after a shop-in-shop concept drove higher sales at participating locations. Kohl’s executives added on a call with analysts that Sephora is attracting new customers who are younger and more diverse. By the end of the year, more than half of Kohl’s locations will have a Sephora store within it.
In an interview, Chief Executive Officer Michelle Gass said the company is optimistic about the future. “I think the biggest thing that we’ve done over the last year is that we’ve structured our business to be more profitable.” She added that the company’s strategy “is building momentum and we are positioned for growth.”
The company expects full-year earnings per share to be in the range of $7 to $7.50, higher than the estimate of $6.54 compiled by Bloomberg. Kohl’s sees net sales increasing 2% to 3% in the current fiscal year, with operating margin in the range of 7.2% to 7.5%.