Kohl's Suffers Bumpy Q2, Home Disappointing
Thursday August 9th, 2012 - 11:57AM
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For the quarter ended July 28, Kohl’s Corp. today reported net income of $240 million, or $1 per diluted share, compared to $299 million, or $1.08 per diluted share, in the year-ago period. Comparable store sales decreased 2.7% in the second quarter.
Second quarter net sales were $4.2 billion, a decrease of 1%.
Transactions per store fell in the period, the company related in a conference call. Dollars per transaction gained although not enough to boost comps. Men’s apparel sales were particularly strong in the quarter, but home reported mid single digit declines. The strongest home segments were in domestics, particularly bath, according to Kevin Mansell, Kohl’s chairman, president and CEO, speaking in the conference call. Food Network was among the better performing Kohl’s exclusive brands. E-commerce sales were up almost 40% even if store revenues were soft.
“Our sales performance in the second quarter was disappointing,” Mansell said. “Our gross margin performance for the quarter, however, was better than expected. Our teams remain disciplined in their expense management and, again, delivered solid results. We accomplished our goal of improving inventory levels for the fall season, and our sales improved considerably in July as units were received. As we look forward to the fall season, we are excited about the fashion content and level of newness in our assortments.”
Kohl’s ended the quarter with 1,134 stores in 49 states versus 1,097 stores at the same time in 2011. During the first half of the year, the company opened nine new stores, including one relocated store, closed one store and completed 40 remodels. Kohl's noted that it expects to open 12 more stores and complete an additional 10 remodels in September.
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