Kohl's Corporation (NYSE:KSS) shares rose more than 4% Wednesday afternoon following the company’s reported Q4 results, with adjusted EPS coming in at $2.20, beating the consensus estimate of $2.13.

Revenue was $6.22 billion, compared to the consensus estimates of $6.53 billion. Management noted a 400bps revenue headwind from delayed inventory receipts and softening traffic in January due to Omicron.

The company’s full 2022-year guidance surprised investors, with expected EPS of $7.00-$7.50, compared to the Street estimate of $6.54, and revenue growth of 2-3%.

Analysts at Deutsche Bank believe the company can meet the revenue target driven by 400 new Sephora shops opening in 2022, improving inventory receipts which will allow the company to meet healthy consumer demand, and year-over-year improvement in women's and an expanded active selection.