Kohl's reports better than expected Holiday quarter, raises dividend by 5 percent

Total revenues at Kohl’s Corporation increased 0.1 percent for the fourth quarter to 6.8 billion dollars, while full year sales were 19.9 billion dollars, down 1.3 percent. Fourth quarter reported net income decreased 3 percent to 265 million dollars, while earnings per diluted share were 1.72 dollars, up 3 percent on the previous year’s fourth quarter. For the full year, reported net income dropped 14 percent to 691 million dollars, while diluted earnings per share were down 10 percent to 4.37 dollars. On non-GAAP basis, fourth quarter and full year net income was 308 million dollars and 769 million dollars, down 16 percent and 17 percent respectively. Diluted earnings per share on non-GAAP basis dropped 11 percent and 13 percent to 1.99 dollars and 4.86 dollars for the fourth quarter and full year, respectively.

Commenting on the trading results, Michelle Gass, Kohl’s Chief Executive Officer, said in a statement: “While 2019 was a year in which our financial results did not meet our expectations, it was also a year of innovation and investment that further strengthened Kohl’s differentiation in the market. We are encouraged by the acceleration of traffic and new customer acquisition in our stores and online driven by the unprecedented level of new brands and partnerships we launched during the year.”

On February 26, 2020, Kohl’s board of directors declared a quarterly cash dividend on the Company’s common stock of 704 cents per share, a 5 percent increase over its prior dividend payable on April 1, 2020 to shareholders of record at the close of business on March 18, 2020.

The company expects earnings per diluted share of 4.20 dollars to 4.60 dollars for fiscal 2020 based on comparable sales change in the range of negative 1 percent to positive 1 percent and gross margin as a percentage of sales to decrease 10 to 20 basis points as compared to 2019.

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