Kohl’s is among the many retailers that in 2021 can at least look forward to beating the results it had to endure last year, as the pandemic raged, apparel sales tanked and public health officials forced nonessential stores to shut down for weeks.
At Kohl’s, sales remain down, but they’re improving. For the current year, the company said it expects net sales to rise in the mid-teens percentage range compared to last year, and operating margin to land between 4.5% to 5%.
The retailer “is clearly on a trajectory to recovery” and is out-performing most of its department store peers, thanks in part to its off-mall locations, some improvements to its merchandise and, probably if only marginally, its Amazon returns policy, according to GlobalData Managing Director Neil Saunders. Kohl’s strength in home and holiday decor helped during key seasonal selling days in the quarter, but “did not offset the softness in traffic to physical stores or the more muted demand for apparel, both of which ultimately pushed down sales,” he said in emailed comments.Retail Dive