Mid-tier department-store operator Kohl’s Corp. reported a higher-than-expected fourth-quarter profit and forecast continued growth from its lucrative exclusive brands, sending its shares up 4.9 percent.
The company expects earnings for this fiscal year that could fall short of Wall Street estimates because of weak consumer sentiment, but investors shrugged that off based on the company’s pattern of understated forecasts.
Kohl’s net profit rose 28.3 percent to $431 million, or $1.40 a share, in the fourth quarter that ended Jan. 30, from $336 million, or $1.10 a share, a year earlier.
Sales rose 8.5 percent to $5.68 billion.
Leaner inventories helped lift its gross margins 1.6 percentage points to 36.4 percent.
Kohl’s shares rose 4.8 percent, or $2.49, to $54.08 in New York Stock Exchange trading.