Kohl’s Corporation (NYSE: KSS) recently reported its financial results for the second quarter of 2021. Sales have returned to pre-pandemic levels, and cost-cutting measures have resulted in the company’s best-operating margins in a decade.
Despite falling more than 40% last year, Kohl’s Corporation (KSS) sales have steadily recovered over the past three quarters to 2019 levels. Following a gradual recovery, total revenue reached $4.45 billion in the second quarter of this year, up 30% from a year earlier. The same quarter two years ago generated $4.43 billion in revenue.
Thus, Kohl’s Corporation (KSS) managed to recover from the pandemic. Due to a reduction in promotions, the gross margin rose to 42.5% from 33.1%. Additionally, the retailer’s operating expenses were below 2019 levels, resulting in a rapid profit increase.
During the last quarter, KSS operating margin reached a 10-year high of 12.8%. Earnings per share rose to a record high of $2.48, more than double Wall Street analysts’ expectations. Kohl’s Corporation (KSS) generated $1.25 billion in free cash flow in the last quarter, which resulted in a stock buyback of $255 million.
The company’s management also raised its full-year forecast. Kohl’s Corporation (KSS) now anticipates adjusted earnings of $5.8 to $6.1 per share, up from its previous guidance of $3.8 to $4.2.
KSS shares cost $58.16 during the trading session on August 23. The company’s market cap reached $8.83 billion. In the past week, KSS shares have risen by 7.70%, bringing their year-to-date gain to 207.72 percent. During the past three months, the stock has gained 4.45%, while over the past six months, it has lost 4.32%.