Kohl’s gains (KSS) exceeded the fourth quarter of 2020

Kohl’s on Tuesday reported fourth-quarter earnings and sales that exceeded analysts ’estimates and signaled stronger growth in 2021.

Faced with pressure from activist investors, the company said it will restore its dividend and recover shares.

With its pandemic-tight sales, Kohl’s has been working to drive more online shoppers and add brands selling home accessories., physical equipment and makeup to attract new customers. Attempts have also been made to reduce costs and cut inventories, and these efforts have helped to improve profits.

“After an extraordinary year managing the pandemic, we ended the year with a very solid financial position and entered 2021 with a strong boost,” chief executive Michelle Gass said in a statement.

Kohl’s shares rose more than 1% in premarket trading.

The following is how the company did during the quarter ended January 30 compared to what analysts expected, using a Refinitiv survey:

• Earnings per share: $ 2.22 adjusted against $ 1.01 expected
• Revenue: $ 5.888 billion vs. 5.86 million euros planned

Kohl reported a net profit of $ 343 million, or $ 2.20 per share, compared to $ 265 million, or $ 1.72 per share, a year earlier. Excluding one-time charges, the company earned $ 2.22 per share, surpassing the $ 1.01 forecast by analysts.

Sales fell to $ 5.888 billion from $ 6.54 million a year earlier, surpassing analysts’ $ 5.86 million.

Online sales increased 22% over the previous year and accounted for 42% of its total sales.

The company expects sales to increase by an average teenage percentage this year. Analysts, on average, expected growth of 17.5%, or $ 17,644 million, this year, according to Refinitiv. He predicted that adjusted earnings would range from $ 2.45 to $ 2.95 per share for 2021, largely in line with expectations of $ 2.67 per share.

Last week, Kohl’s rejected an investor group’s attempt to seize control of its board of directors. The retailer has argued that it would disrupt the momentum it has had in renewing its business. The group, formed by Macellum Advisors, Ancora Holdings, Legion Partners Asset Management and 4010 Capital, has a 9.5% stake.

On Tuesday, Kohl’s said it would spend $ 200 million to $ 300 million in stock rewards this year. He said he plans to invest at least $ 550 million in capital spending, with some of that money earmarked for the debut of hundreds of Sephora mini-stores in its stores and open its sixth e-commerce compliance center in the United States.

Late last month, Kohl’s said its board declared a dividend payment of 25 cents per share.

Kohl’s shares have risen about 45% in the past twelve months, since Monday’s market close. The retailer has a market cap of $ 8,999 million, which has grown to be larger than Nordstrom and Macy’s.

Find Kohl’s full press release here.