Fourth quarter sales at Kohl’s were down, but the retailer reported a slight uptick in comparable store sales for the three month period ended February 2.
Total revenue was $6.8 billion, down 3.3% from the comparable quarter the prior year. Net income was $272 million, or $1.67 per diluted share, compared with net income of $468 million, or $2.81 per diluted share in the same quarter the prior year.
Comparable store sales were up 1%.
For its fiscal year, total sales were $20.1 billion, up 0.7% year-over-year. Comparable store sales for the year were 1.7%.
“With a clear focus on driving traffic and operating with discipline, the company is delivering sales growth while also improving profitability. We are financially strong and our overall health in the business is positioning us well for continued success,” said Michelle Gass, CEO of Kohl’s.
The company said it is closing four underperforming stores in April and will open four smaller format stores later this year. It is consolidating call center locations that support both its Kohl’s charge and online customers.
During an investor conference call, Gass said Kohl’s is partnering with Planet Fitness and will add fitness centers to up to 10 stores, the latest effort by the company to boost its wellness initiatives while also looking for new ways to drive store traffic.
While Gass did not offer specifics on the Planet Fitness agreement, she did call the agreement a win-win for both companies as well as consumers.
“I think like everything, we have to build a few,” she said. “We will learn and we will take it from there. All our indications are that this is going to be a great fit for us and for our customers.”
Working with Planet Fitness is the latest step by Kohl’s to enhance its wellness offerings. The retailer recently announced a deal with WW— formerly Weight Watchers— to add WW-branded products and hold WW meetings in select stores.
Kohl’s is also enhancing its in-store active (fitness) offerings this year in approximately 160 of its highest-performing stores. Gass noted that active grew mid-single-digits in the fourth quarter.