KOh (KSS) is a well-known retailer that provides reasonably priced merchandise such as clothing, footwear, accessories, and household and beauty items through its physical locations and the Internet.
On November 18, Kohl’s reported strong third quarter earnings as the company’s results continued to grow. Revenue increased 15.6% year-over-year, while adjusted earnings per share rose to $ 1.65 per share, from $ 0.01 per share in the prior quarter.
When it comes to share price performance, Kohl’s stock has risen by around 84% in the past year and 47% since the start of the year.
Kohl’s third quarter results show continued growth
It’s amazing how Kohl’s performed record high despite rising costs and inflation.
The exceptional results highlight the company’s ability to overcome inventory shortages and other supply chain issues while achieving impressive improvements in sales and margins.
After that, it’s worth noting that Kohl has worked hard to become a top destination for both active and casual lifestyle items. Kohl provided investors with an update on their recent deal with Sephora, a well-known beauty products distributor, indicating that around 200 new Sephora stores have been opened at Kohl’s sites.
Such partnerships with well-known brands, I think, will help Kohl expand their product selection and consumer base this holiday season.
To top it off, Kohl also raised its full-year revenue and profit outlook while increasing its share buyback activity.
Kohl’s continued focus on increasing its footprint in the retail industry through new partnerships and expanded offerings should help the company increase its website traffic and grow even further.
Improved website traffic
In addition to the positive statistics for the third quarter, we found that the number of unique visitors to Kohl’s website increased 3.7% from September to October. This period was also marked by the growth of stock prices, which rose 3.1%.
This data was retrieved using TipRanks new website traffic tool, which derives its data from Semrush (SEMR).
The growing number of visits to Kohl’s website reflects the strong fundamentals of the company and the high demand for its articles. In addition, the distributor’s positive forecast for the whole of 2021 shows that it still has strong growth potential.
The analyst intervenes
Guggenheim analyst Robert Drbul continues to be excited about the company’s third quarter results. He writes: “These results contributed to the highest Q3 operating margin over the past 9 years, and we remain optimistic that this increased level of profitability is sustainable. “
In addition, Kohl’s agreements with Amazon (AMZN) and Sephora, according to Drbul, are promising. He comments: “We welcome the potential of deploying Sephora, which is proving to be a strong traffic driver, as well as the Amazon Returns program, a traffic driver, to help with revenue recovery / growth. with the possibility of attracting new customers. . “
In addition, the analyst believes that the company’s many efforts, such as “strong e-commerce and active growth, as well as advancing in the Outdoor category and resetting women” should help it thrive.
As a result, Drbul maintained a buy rating on the Kohl stock and increased its price target to $ 75.00 from $ 70.00.
Cautiously optimistic Wall Street
When it comes to Wall Street, the analyst consensus is cautiously bullish on Kohl, with a moderate buy consensus rating, based on 5 buy, 5 take and 2 sell rating. As for the price target, the KSS average price target of $ 69.08 implies upside potential of 21% from current levels.
Additionally, Kohl scores a “perfect 10” on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.
Disclosure: At the time of publication, Shalu Saraf does not have a position in any of the titles mentioned in this article.
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