Kohl's raised its full-year financial outlook and reported quarterly earnings of $0.56 per share, exceeding the $0.33 Zacks Consensus Estimate. Revenue came in at $3.35 billion versus $3.32 billion estimated by LSEG analysts. Shares jumped 27% in pre-market trading after the announcement and remained up 17% at publication. Same-store sales declined 5.1% year-over-year. Management credited improved margins, lower inventory and reduced expenses to turnaround efforts including 27 store closures and a 10% corporate workforce reduction. The company also adjusted product assortment and increased branded-item coupons as part of the recovery strategy under interim CEO Michael Bender.
The company's solid quarter can be largely attributed to its turnaround efforts and major cost cutting measures, including store closures and workforce reductions. Earlier this year, the department store closed 27 stores across the country, and saw a 10% reduction of its corporate workforce. The company's turnaround efforts include a reassessment of its assortment of products, as well as introducing more coupons for branded items.
Following Wednesday's earnings announcement, Kohls shares jumped by 27% in pre-market trading and share are up 17% at the time of publishing. Kohl's beat its quarterly earning estimate, coming out at $0.56 in contrast to the $0.33 Zacks Consensus Estimate. Additionally, the company saw a slight uptick in revenue, coming out at $3.35 billion compared to the $3.32 billion estimate by LSEG analysts.
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