Kohl’s continued its sales momentum in the second quarter, and raised its fiscal 2018 outlook following the solid results.
Total revenue in the second quarter ended August 4 rose 4% to $4.57 billion compared to revenues of $4.39 billion in the previous second quarter. Comparable sales increased 3.1% in the quarter.
In the second quarter, net income was $292 million compared to net income of $208 million in the prior year’s second quarter. Diluted earnings per share was $1.76 compared to $1.24 diluted earnings per share in the previous second quarter.
Michelle Gass, Kohl’s CEO, said, “We are pleased to report that our sales momentum continued in the second quarter, resulting in a comparable sales increase of 3.1%, our fourth consecutive quarter of positive comparable sales. We saw strength across the business— both our store and digital channels, all regions of the country, and our proprietary and national brands. Our men’s and women’s apparel businesses led the company, followed closely by footwear. We also reported higher gross margin as a result of our ongoing focus on inventory management. I would like to thank our team for their outstanding efforts in delivering strong and sustainable performance, which are reflected in our results.”
The company now expects its fiscal 2018 diluted earnings per share to be $4.96 to $5.36, compared to its prior guidance of $4.86 to $5.31. Excluding the loss on extinguishment of debt, fiscal 2018 diluted earnings per share is expected to be $5.15 to $5.55, compared to prior guidance of $5.05 to $5.50.