Kohl’s (KSS) earnings in the fourth quarter of 2020 exceeded

Kohl’s released fourth quarter earnings and sales on Tuesday that exceeded analysts’ estimates and pointed to stronger growth in 2021.

Facing pressure from activist investors, the company said it would reinstate its dividends and buy back shares.

With its sales hindered by the pandemic, Kohl’s has been working to attract more online buyers and add brands that sell home accessories, fitness and makeup equipment to attract new customers. It has also tried to cut costs and reduce inventories, and these efforts have helped to increase profits.

“After an extraordinary year of managing the pandemic, we ended the year in a very solid financial position and entered 2021 with a strong boost,” said Chief Executive Michelle Gass in a statement.

Kohl’s shares were up more than 1% in the pre-market.

See how the company fared during the quarter ended January 30, compared to what analysts expected, using a Refinitiv survey:

• Earnings per share: $ 2.22 adjusted against $ 1.01 expected
• Revenue: $ 5.88 billion versus expected $ 5.86 billion

Kohl’s reported net income was $ 343 million, or $ 2.20 per share, compared to $ 265 million, or $ 1.72 per share, a year earlier. Excluding one-time expenses, the company earned $ 2.22 per share, exceeding analysts’ forecast of $ 1.01.

Sales fell to $ 5.88 billion, from $ 6.54 billion a year earlier, exceeding the $ 5.86 billion forecast by analysts.

Online sales increased by 22% over the previous year and represented 42% of its total sales.

The company expects sales to increase by a percentage of mid-teens this year. Analysts, on average, expected sales growth of 17.5%, or $ 17.64 billion, this year, according to Refinitiv. It predicted adjusted earnings in the range of $ 2.45 to $ 2.95 per share in 2021, largely in line with expectations of $ 2.67 per share.

Last week, Kohl’s rejected an investor group’s attempt to take control of its board. The retailer argued that this would undermine the momentum it had in renewing its business. The group, which consists of Macellum Advisors, Ancora Holdings, Legion Partners Asset Management and 4010 Capital, has a 9.5% stake.

On Tuesday, Kohl’s said it would spend between $ 200 million and $ 300 million on the share buyback this year. She said she plans to invest at least $ 550 million in capital expenditures, with part of that money going to open hundreds of Sephora mini stores in her stores and open her sixth e-commerce service center in the United States.

At the end of last month, Kohl’s said its board declared a dividend payment of 25 cents per share.

Kohl’s shares have risen about 45% in the past 12 months since Monday’s market closed. The retailer has a market capitalization of $ 8.99 billion, which has grown to be larger than Nordstrom’s and Macy’s.

Find the full Kohl press release here.