(Bloomberg) — Kohl’s Corp.’s turnaround attempt showed some progress after the retailer raised its annual earnings outlook, but it still doesn’t see sales growth this year.
The company’s shares declined as much as 9.4%, erasing premarket gains just after its earnings were released. The stock had fallen 13% this year through Tuesday’s close, compared with a 12% gain of the S&P 500 Index over the same period.
Kohl’s expects sales to be little changed to down 1.5% this year, a slight upgrade from its previous forecast. The outlook came after revenue missed Wall Street estimates last quarter.
On the profit front, the company now expects adjusted earnings per share this year of as much as $2.40, up from previous guidance with a high end of $1.60.
The retailer also said it would reinstate share repurchases, with $100 million targeted for this year.
Kohl’s said Sephora sales fell 4% last quarter, citing headwinds in the business. Shoppers are still excited about new products offered by Sephora, but there were declines in brands with expanded distribution, according to the retailer.
The company’s turnaround has been gaining momentum under Michael Bender, who took over as chief executive officer last year after its previous CEO was fired. Bender has focused on improving the shopping experience, looking to proprietary brands to help drive sales.
(Updates shares and adds details on Sephora business.)
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