Kohl’s Corp. (NYSE:KSS) announced robust fourth-quarter results. The department store retailer turned a profit in the fourth quarter, reporting earnings of $1.67 per diluted share compared to a loss of $2.49 per share in the same period last year. Analysts were expecting KSS to report earnings of $1.28 per share in Q4.
The retailer’s net sales declined by 1.1% year-over-year to $5.7 billion but below consensus estimates of $5.8 billion. Kohl’s comparable sales fell by 4.3% in Q4.
FY24 Outlook Revealed
Kohl’s has revealed its FY24 outlook, projecting that net sales will either decline by 1% or increase by 1%, with comparable sales expected to range between 0% and 2%. The company anticipates diluted earnings to fall within the range of $2.10 to $2.70 per share. Furthermore, the company’s Board of Directors has declared a quarterly cash dividend of $0.50 per share, payable on April 3 to shareholders of record as of March 20, 2024.
New Strategic Partnership
Kohl’s has unveiled a strategic partnership with WHP Global, the owner of the Babies“R”Us brand, aiming to offer baby gear and furniture to a wider customer base. The first Babies“R”Us shops are set to debut in Kohl’s this August, with plans for expansion to approximately 200 stores later in the year.
Is Kohl’s a Good Stock to Buy?
Analysts remain cautiously optimistic about KSS stock with a Moderate Buy consensus rating based on one Buy and two Holds. Over the past year, KSS stock has gone up by 25% and the average KSS price target of $32.50 implies an upside potential of 19.5% at current levels.
