Kohl’s Q2 Revenue, Comp Sales Down

Second quarter sales at Kohl’s were down but officials with the company reported that same-store sales toward the end of the three month period ended August 3 showed improvement.

Total revenue for the quarter was $4.43 billion, down from revenue of $4.57 billion in the comparable quarter the previous year. Net income was $241 million, or $1.51 per diluted share, down from net income of $292 million, or $1.76 per diluted share, in the second quarter of 2018.

Comparable store sales for the quarter were down 2.9% compared to an increase of 3.1% in the second quarter the prior year.

Despite the drop in sales, Michelle Gass, Kohl’s CEO, said the retailer’s business strengthened as the company progressed through the second quarter.

“Comparable sales were better than the first quarter and improved during the period, turning positive during the last six weeks of the second quarter with 1% growth,” she said. “This positive trend has continued into August driven by a successful start to the back-to-school season. We are confident that our upcoming brand launches, program expansions, and increased traffic from the Amazon returns program will incrementally contribute to our performance during the balance of the year and beyond.”

The company affirmed its adjusted annual earnings per diluted share guidance of $5.15 to $5.45, which excludes $0.26 per diluted share related to impairments, store closing and other costs recognized in the first six months of 2019.