"The launch of Under Armour exceeded our expectations, and the launch accelerated our rate of growth in the important active category," Kohl's CEO Kevin Mansell said on Thursday's earnings conference call.
The department store chain only just began selling Under Armour's merchandise — sported by celebrity athletes like Stephen Curry and Tom Brady — in its stores this past March.
"I think by the time we get through the second quarter and into the third quarter, we'll have a much better vision of the positive impact that [the Under Armour] brand has on our [same-store sales] comps," Mansell said.
The CEO has previously guided that the partnership with Under Armour could lift Kohl's comparable sales — a metric closely watched for retail stocks by Wall Street — by as much as 100 basis points, and "nothing has occurred in the launch that would lead us to believe that it would be anything less than that," Mansell said on Thursday.
On the whole, Wall Street was largely disappointed with Kohl's mixed earnings results on Thursday, as the department store chain is still working on shrinking its inventory levels and finding ways to drive more customers into stores, competing against e-commerce players like Amazon.
Even as Kohl's posted a 14 percent jump in adjusted quarterly profit for the period, fueled by higher traffic in stores during March and April, same-store sales declined for the fifth consecutive quarter.
Shares of the stock were falling around 6 percent by late Thursday afternoon.