Kohl’s is continuing its hot streak.
The department store chain today reported another quarter of solid financial results, topping Wall Street expectations and raising its profit forecast for the full year.
Kohl’s boasted its fifth consecutive quarter of surging same-store sales, up 2.5 percent since rebounding in the middle of last year. (Wall Street forecasted a comp gain of 1.74 percent.) The company seeks to top the number of last holiday season, when it saw growth of nearly 7 percent.
“We are executing extremely well in our stores and our digital channels, and our efforts across the company have us well-positioned going into the fourth quarter,” CEO Michelle Gass said in a statement, adding that the apparel segment drove significant growth for the retailer in Q3.
The Milwaukee-based retailer also likely received a boost from strong consumer spending in the country, with net income increasing 38 percent to $161 million, or 98 cents per share, besting forecasts for earnings of 96 cents per share. Sales, meanwhile, rose 1.3 percent to $4.37 billion, just above analysts’ expectations of $4.36 billion.
According to the U.S. Commerce Department, last quarter’s consumer spending climbed a robust 4 percent — its strongest quarter in nearly four years. The country’s gross domestic product also grew at an annualized rate of 3.5 percent.
The company’s figures come just in time for a lively holiday shopping season, with consulting firm Deloitte forecasting that American spending will top $1.1 trillion between the months of November and January, an increase of 5 to 5.6 percent compared with last year.
Kohl’s has made a bigger play for consumers’ dollars by revamping its rewards program ahead of Black Friday and Cyber Monday. Like Target and other retailers, it’s also poised to benefit from Toys R Us’ liquidation, as chunks of the market share remain up for grabs.
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