Kohl’s Earnings Surprise Was Powered by the Amazon Returns Program

Shareholders of Kohl's (NYSE: KSS) have Amazon (NASDAQ: AMZN) to thank for the better-than-expected fourth-quarter results the discount retail chain posted Tuesday. 

After warning last month that its holiday-season sales had been disappointing and that earnings would come in lower than it had guided toward, this week, Kohl's revealed revenues of $6.54 billion and earnings of $1.99 per share, topping Wall Street's consensus forecasts of $6.52 billion in revenue and $1.91 per share in profits.

The retailer was able to outperform its own expectations for the period that ended Feb. 1 because its January sales turned out surprisingly strong thanks to the Amazon returns program, which helped lift comparable sales for the month, bringing them to flat for the quarter.

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Source Fool.com