Kohl's raises 2021 forecasts as Americans return to stores

[May 20, 2021]  (Reuters) -Kohl's Corp raised its forecast for 2021 revenue and profit after topping first-quarter estimates on Thursday, as the U.S. department store operator bets on a shopping boom after a gloomy year due to the coronavirus pandemic.

U.S retailers, including Macy's Inc, TJ Maxx parent TJX Cos Inc, Walmart Inc and Target Corp, have all pointed to a rebound in demand for non-essential products as vaccinated Americans feel more comfortable to step out and shop.

"Along with a favorable consumer spending backdrop, we continue to see our key strategic initiatives gain traction and resonate with customers," Chief Executive Officer Michelle Gass said in a statement.

Kohl's forecast 2021 adjusted earnings to be between $3.80 and $4.20 per share, excluding certain charges, versus a prior range of $2.45 to $2.95.

The mid-priced retailer also said it was expecting net sales to increase in the mid-to-high teens percentage range, compared with its previous forecast for a rise in the mid-teens percentage range.

However, the sales forecast was largely below heightened analysts' expectations of a 19.3% jump, according to IBES data from Refinitiv.

Shares in Kohl's fell about 4% in pre-market trading. They have gained about 50% this year.

In the first quarter ended May 1, net sales rose about 70% to $3.66 billion, beating estimates of $3.48 billion. Excluding items, the company earned $1.05 per share, crushing estimates of 4 cents.

(Reporting by Praveen Paramasivam in Bengaluru; Editing by Sriraj Kalluvila)

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