Consumer Behavior

Kohl's sees big sales spike ahead

Photo by istock.com

March 3, 2021

Kohl's is optimistic about its 2021 retail sales season and said it's starting the year with "strong momentum," noting initiatives such as a partnership with luxury beauty brand Sephora.

"After an extraordinary year managing through the pandemic, we ended the year in a very solid financial position, and we enter 2021 with strong momentum. We are pleased with the progress we are making against our strategic initiatives and we are set up to deliver a multi-year improvement in sales and operating margin. Several newly announced initiatives will come to life for our customers in the year ahead, most importantly the launch of our Sephora partnership in August," Michelle Gass, Kohl's CEO, said in a press release.

While many retailers have declined to present forecasts for 2021, given the ongoing COVID-19 pandemic, Kohl's expects full year 2021 net sales to increase in the mid-teens percentage range as compared to the prior year.

The company plans to open its sixth e-commerce fulfillment center and drive a store refresh strategy in 2021.

A big reason for Kohl's optimism is its reported Q4 financials. The retailer reported both earnings and sales topped analysts' expectations with revenue of $5.88 billion compared to the expectation of $5.86 billion. In net income Kohl's hit $343 million, compared with $265 million forecasted by analysts. Online sales spiked 22% from a year earlier and accounted for 42% of total sales, according to a CNBC report.