In the fourth quarter, Kohl’s Corp. comparable store sales and earnings slipped, but it still managed to top a MarketBeat published analyst average estimate by 11 cents.
For the fourth quarter ended January 28, Kohl’s posted net income of $252 million, or $1.44 per diluted share, versus $296 million, or $1.58 per diluted share, in the quarter a year prior. Comparable store sales fell 2.2% versus the period in the year before. Net sales were $6.21 billion versus $6.39 billion in the year-earlier quarter. Operating income was $473 million as compared with $541 million in the 2015 period.
For the full fiscal year, Kohl’s Corp. posted net income of $556 million, or $3.11 per diluted share, versus $673 million, or $3.46 per diluted share, in the quarter a year prior. Adjusted net income, with excludes impairments, store closings and other one-time costs Kohl’s incurred in 2016 as well as extinguishment of debt in 2015, was $673 million, or $3.76 per diluted share, versus $781 million, or $4.01 per diluted share, in the pervious-year quarter.
Comparable store sales fell 2.4% versus the period in the year before. Net sales were $18.69 billion versus $19.2 billion in the year-earlier quarter. Operating income was $1.18 billion as compared with $1.55 billion in the 2015 period.
“Sales results were weak for the quarter in total, driven by declines in brick and mortar traffic, and offset somewhat by strength in online demand,” said Kevin Mansell, Kohl’s chairman, president and CEO. “We saw improvement in merchandise margin, and our team continued to manage inventory and expenses extremely well. In 2017, we will accelerate our focus on becoming the destination for active and wellness with the launch of Under Armour in early March. We will also extend our efforts on improving our speed to market across all of our proprietary brands into all apparel areas and home.”