Why Are Kohl's Shares Rallying After Q2 Earnings

Kohl's Corp (NYSE:KSS) reported second-quarter FY21 revenue growth of 30.5% year-on-year, to $4.45 billion, beating the analyst consensus of $3.99 billion. Net sales increased 31.4%.
Gross margin for the quarter expanded by 942 basis points to 42.5%.
The operating margin was 12.8%, and operating income for the quarter rose 383% Y/Y to $570 million.
Adjusted EPS of $2.48 beat the analyst consensus of $1.16.
Kohl's plans to buy back $500 million to $700 million of shares in 2021.
Kohl's quarterly cash dividend of $0.25 per share is payable September 22, 2021, to shareholders of record on September 8, 2021.
Kohl's held $2.6 billion in cash and equivalents as of July 31, 2021. Net cash provided by operating activities for the six months totaled $1.7 billion.
Outlook: Kohl's sees FY21 net sales increase in the low twenties percentage (prior mid-to-high teens percentage).
The company raised FY21 adjusted EPS guidance to $5.80 - $6.10 (prior $3.80 - $4.20) versus the consensus of $4.35.
Price Action: KSS shares are trading higher by 6.73% at $55.3 on the last check Thursday.

Benzinga