Kohl’s (NYSE:KSS) outperformed expectations in terms of earnings and gross margin for its Q4, though it presented a mixed picture with revenues and future outlook that didn't meet forecasts, leading to a share price drop of more than 2% intra-day today.

For Q4, Kohl’s reported EPS of $1.67, surpassing the anticipated $1.27 by analysts. However, its revenue of $5.71 billion fell below the expected $5.8 billion.

The retail chain saw a significant improvement in its gross margin, reaching 32.4%, a substantial rise from the previous year’s 23% and topping the forecast of 31.9%.

For the full year 2024, Kohl’s anticipates EPS to fall in the range of $2.10 to $2.70, compared to the Street estimate of $2.61. The company expects its revenue to vary between a 1% decrease and a 1% increase, with comparable sales projected to be between 0% and 2%.