Kohl’s raises 4Q profit outlook after sales at stores open at least a year jump in January

Kohl’s boosts 4Q outlook after jump in Jan. sales

MENOMONEE FALLS, Wis. — Kohl’s Corp. raised its fourth-quarter profit forecast again on Thursday after January sales climbed faster than expected.

The company said sales at stores open more than a year were up 6.5 percent for the four weeks ended Jan. 31. That’s an important gauge for retailers because it excludes sales growth that comes from newer stores.

It was a bigger jump than Wall Street expected. On average, analysts projected an increase of 2.8 percent, according to a survey by Thomson Reuters.

Total sales grew 10.7 percent.

In a statement, Kohl’s CEO Kevin Mansell said the department store operator is seeing a rise in the number of transactions per store, “indicating customers are selecting Kohl’s when they choose to shop, even as they remain conservative in their discretionary spending.”

As a result of strong January sales, Kohl’s raised its profit forecast for the fourth quarter. It now expects profit of $1.36 to $1.37 per share, up from a previous forecast of $1.28 to $1.30. Analysts expected $1.31.

Kohl’s had already raised its projected range from a forecast of $1.14 to $1.24 last month after December sales came in better than expected.

The company’s shares fell $1.75, or 3.3 percent, to $50.39 in morning trading.