Kohl's Corp.(NYSE:KSS) shares soared in premarket trade after it raised its profit outlook for 2017, citing strong holiday sales.
The department store chain said in a statement that it is now expecting adjusted earnings per share of US$3.98 to US$4.08, up from its guidance of $3.60 to $3.80 given previously.
Growth in digital demand accelerated significantly
The company said gross margin rate is still expected to increase from last year at the high end of its prior guidance of US$3.60 to US$3.80.
The upgrade in guidance comes after the company posted total and same-store sales growth of 6.9% for the November-December holiday period.
"All lines of business and all regions reported positive comp sales. As expected, growth in digital demand accelerated significantly in the Holiday period from the year-to-date trend.
“In addition, we experienced positive sales in our stores driven by stronger traffic," said chief executive Kevin Mansell.
In premarket, its shares were up 5.78% at US$57.50.