By Dhirendra Tripathi
Investing.com – Kohl's stock (NYSE:KSS) stock rose 7% on Thursday after raising its full-year guidance for the third time as more consumers opt for casual lifestyle apparel sold by the company.
The company’s decision to boost its share repurchases to $1.3 billion in the year, up from the $700 million it planned earlier was also lending strength to the stock. The company has so far spent $761 million on the buyback.
Third-quarter record sales and earnings led the company to raise its annual forecast one more time.
Kohl's now expects annual net sales to rise by around 25% compared to the about 22% growth forecast it gave out in August.
Total revenue in the third quarter was around 15% higher at $4.6 billion as the company reaped the benefit of shift in consumer preference for a casual and relaxed lifestyle.
Kohl's said it is pleased with the response to its rollout of Sephora products at its stores -- an attempt to position the company as a beauty destination in order to attract a younger audience.
The company’s adjusted profit was $243 million compared to a negligible $2 million in the third quarter of 2020. On a per share basis, it was more than double the estimate.