Retail giant Kohl’s Corporation (NYSE:KSS) early Thursday posted better than expected third quarter earnings results and stood by its full-year oulook, sending its shares higher in premarket trading.
The Menomonee Falls, Wisconsin-based company reported Q3 adjusted profits of $0.80 per share, a full ten cents better than analysts’ expectations of $0.70. Revenue fell 2.3% from last year to $4.33 billion, matching Wall Street expectations.
Same-store sales fell 1.7% in the latest quarter, which was worse than estimates of -1.5%. Same-store sales, also known as comparable sales or simply “comps,” are perhaps the most important measure of a retailer’s performance, since they compare year-over-year sales gains for stores open at least 12 months.
Looking ahead, KSS reaffirmed its previously-announced full-year EPS guidance of $3.80 to $4.00, which straddles Wall Street’s $3.87 per share estimate.
Kohl’s Board of Directors also lifted its share buyback plan to $2.0 billion.
The company commented via press release:
“We are pleased to see continued improvement in our sales trends. Our back-to-school season was strong, followed by a soft September, and progressive improvement throughout October. We are encouraged by these trends as we enter the Holiday season. Our teams did an excellent job managing inventory. Expenses were also well-controlled as substantially all teams outperformed their plans.”
Kohl’s shares rose $3.65 (+7.99%) to $49.35 in premarket trading Thursday. Prior to today’s report, KSS had fallen 4.05% year-to-date, versus a 6.16% rise in the benchmark S&P 500 index during the same period.