Kohl's is rallying after giving rosy earnings guidance

FREDERIC J. BROWN/AFP/Getty ImagesA woman shops for jewellery at a Kohl’s department store which opened at 5am a day after Christmas on December 26, 2013 in Alhambra, California.

Kohl’s gained 4.72% early Tuesday after posting better-than-expected profits for the fourth quarter and issuing rosy full-year earnings guidance.

The retailer reported adjusted earnings of $US2.24 a share – $US0.06 better than what analysts surveyed by Bloomberg were expecting. It generated $US6.54 billion in sales, just shy of the $US6.57 billion that was expected.

Meanwhile, the company’s comparable sales grew 1% year-over-year, while analysts were only expecting a 0.2% increase.

“With a clear focus on driving traffic and operating with discipline, the company is delivering sales growth while also improving profitability,” said CEO Michelle Gass in a press release.

“We are financially strong and our overall health in the business is positioning us well for continued success.”

Looking ahead, the company sees its full-year adjusted earnings in the range of $US5.80 to $US6.15 a share, the lower end of which still tops the Wall Street consensus of $US5.75.

Kohl’s was up 3% so far this year through Monday, trading near $US66.50 a share.

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