Kohl’s net sales and income climbed in the fourth quarter and fiscal year, as the department store retailer posted strong comps in the holiday season.
In the fourth quarter ended February 3, Kohl’s reported $6.7 billion in total sales, with comparable store sales up 6.3%. Net sales were $6.2 billion in last year’s fourth quarter. Net income rose to $468 million with diluted earnings per share of $2.81 compared to $252 million and diluted earnings per share of $1.44 in last year’s fourth quarter. Excluding tax reform and store closures, diluted earnings per share was $1.99.
In the fiscal year, Kohl’s posted overall net sales of $19 billion and comparable store sales of 1.5%. Total sales were $18.6 billion in the previous fiscal year. Net income rose to $859 million compared to $556 million in the previous fiscal year. Diluted earnings per share rose to $5.12 from $3.11 in the previous fiscal year. Excluding tax reform benefits and store closures, diluted earnings per share were $4.31, exceeding the high end of guidance by $0.11 per share.
Kevin Mansell, Kohl’s chairman, CEO and president, said, “I am very pleased with our fourth quarter and full year results, which exceeded the high end of our most recent guidance by $0.11 per share. Over the course of the year, we saw consistent, sustained improvement in sales trends which culminated in a 6.3% increase in our fourth quarter comp sales. We improved our merchandise margins through strong inventory management and improved promotional and permanent markdowns. All areas effectively managed their expenses. And, we ended the year with 7% less inventory.”