Kohl's posts strong holiday sales, raises FY 2017 forecast

(Reuters) - Kohl's Corp posted a 6.9 percent increase in comparable-store sales for November and December, helped by strong holiday shopping traffic and higher online sales, leading the department store operator to raise its full-year profit forecast.

The numbers compare to the 1-3 percent growth in holiday sales posted by rivals J.C. Penney Co Inc and Macy's Inc last week.

Kohl's shares were up 6.8 percent at $58.05 before the bell on Monday.

The company said it now expects its fiscal 2017 diluted earnings per share to come in between $4.10 and $4.20, versus its previous forecast of $3.72 to $3.92. Analysts on average expect the company to report a profit of $3.64 for the year, according to Thomson Reuters I/B/E/S.

To counter fewer shoppers visiting malls and opting for the convenience and savings that online shopping provides, Kohl's has focused on revamping beauty departments at its stores and bringing in popular brands such as Under Armour.

The company said its forecast does not include the impact of recent changes in the tax code, which are expected to have a positive impact on its effective tax rate.

(Reporting by Vibhuti Sharma in Bengaluru; Editing by Saumyadeb Chakrabarty)