Kohl's Stock Jumps on Solid Q4 Update
The COVID-19 pandemic continues to weigh on department stores' sales results, but the worst of the storm seems to have passed. That's particularly true for Kohl's (NYSE: KSS). On Thursday, the retailer told investors that its profitability improved much more than expected in the final quarter of its 2020 fiscal year. This news triggered a rally in Kohl's stock, which jumped 6% on Thursday.
In the third quarter, Kohl's sales fell 13% year over year, which marked a big improvement over the second quarter, when sales plunged by 23%. Kohl's also returned to profitability -- albeit just barely -- posting an adjusted profit of $2 million ($0.01 per share).
Kohl's didn't share specific guidance for the fourth quarter. However, in a preliminary update on the company's Q4 performance this week, CEO Michelle Gass stated, "Our fourth quarter performance exceeded our expectations across all key metrics with sales strengthening as we moved through the period." Total sales fell about 10% on an 11% decrease in comparable sales.
Source Fool.com
