Less than one year into Kohl’s and Sephora teaming up on a shop-in-shop that has brought Sephora’s personal care and beauty products to a wider audience, Kohl’s leadership says the arrangement is one of the drivers in the company’s third-quarter revenue growth.
Kohl’s revenue jumped 15.6% in the third quarter of fiscal 2021 from the same time one year earlier, going from just under $4 billion in 2020 to $4.6 billion in the three-month period that ended Oct. 31.
For the first nine months of the fiscal year, Kohl’s saw an almost 32% jump from 2020 to 2021, going from $9.8 billion last year to more than $12.9 billion this year.
“Our strategic efforts to transform Kohl’s into the leading destination for the active and casual lifestyle continue to build momentum,” said Michelle Gass, Kohl’s chief executive officer, in the company announcement on Thursday (Nov. 18). “We delivered another quarter of record earnings, with both sales and margins exceeding expectations.”
Also Read: Kohl’s Teams With Sephora to Launch In-Store Shops
Kohl’s and Sephora teamed up in December on a long-term, immersive shop-in-shop strategy that encompasses about 2,500 square feet at the front of 200 Kohl’s stores, which brings more than 100 brands to the 65 million U.S. Kohl’s customers.
Kohl’s and Sephora expect to have a minimum of 850 shop-in-shops by 2023. Sephora has several other partnerships in place, including a deal with Instacart for same-day delivery of beauty products.
Buoyed by its third-quarter results, Kohl’s is boosting its overall 2021 financial outlook to reflect net sales in the mid-20s compared to low 20s and an operating margin of 8.4%, up from the prior target of 7.4% to 7.6%.
“All of the pieces of our strategy are coming together, and we remain incredibly confident in the future of our business,” Gass said.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More