**Kohl’s Beats Expectations as Inventory Levels Improve**
**Kohl’s Corporation** (NYSE: KSS) reported better-than-expected fourth-quarter results on Thursday, as a strong holiday season and improved inventory levels boosted sales. The company also updated its guidance for the full year.
**Q4 Financial Performance**
– Net sales increased by 7.6% to $6.3 billion, surpassing analysts’ estimates of $6.15 billion.
– Comparable store sales rose by 6.8%, exceeding expectations of a 5.2% gain.
– Adjusted earnings per share (EPS) came in at $3.67, well above the consensus estimate of $2.97.
– Gross margin expanded by 1.2 percentage points to 37.6% due to improved inventory management and a higher mix of full-price sales.
**Inventory Management**
Kohl’s efforts to optimize its inventory levels have been successful, leading to improved margins and reduced markdowns. The company reported a 14% decrease in inventory levels at the end of the quarter compared to the prior year.
**Guidance Raised**
Based on the strong fourth-quarter performance, Kohl’s raised its guidance for the full year.
– Net sales growth is now expected to be in the range of 4.5% to 5%, up from the previous estimate of 2% to 3%.
– Comparable store sales growth is projected to be between 4% and 5%, higher than the earlier guidance of 2% to 3%.
– Adjusted EPS is now anticipated to be in the range of $12.40 to $12.65, compared to the previous estimate of $11.70 to $12.10.
**CEO’s Comments**
Michelle Gass, Kohl’s CEO, expressed optimism about the company’s future prospects and highlighted the impact of its inventory management initiatives.
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