Kohl’s continued its earnings streak thanks to the strength of the holiday shopping season.
Shares of the department store jumped more than 5 percent Tuesday morning during pre-market trading after the company reported better than expected earnings for the three-month period ending Feb. 2.
Total revenues were $6.8 billion. While sales were less than the same time last year, they still beat analysts’ expectations. Meanwhile, income was $366 million, up from $312 million during the same period last year.
Fourth-quarter same-store sales improved 1 percent, marking the sixth consecutive quarter of surging same-store sales.
“With a clear focus on driving traffic and operating with discipline, the company is delivering sales growth while also improving profitability,” Michelle Gass, who took over as chief executive officer of Kohl’s last May, said in a statement. “We are financially strong and our overall health in the business is positioning us well for continued success.”
The retailer paid off $900 million in debt last year, ending 2018’s fiscal year with 1,159 Kohl’s stores in 49 states. Moving forward, the company said it would close four stores in April, but open four smaller stores the same month.
The department store updated its full-year 2019 guidance, forecasting a 2 percent increase in same-store sales. Previously, it had expected same-store sales to be flat. Earnings per share for the year are expected to be between $5.80 and $6.15.