Home / Knowledge / News / Apparel/Garments / Kohl's delivers strong earnings growth in challenging time
Kohl's delivers strong earnings growth in challenging time
16
Aug '11
Kohl's Corporation Kohl's Corporation reported results for the fiscal periods ended July 30, 2011.

Second Quarter Results

Kohl's Corporation reported second quarter diluted earnings per share increased 30 percent to $1.09. Net income for the quarter was $303 million, compared with $260 million ($0.84 per diluted share) a year ago. Net sales were $4.2 billion, an increase of 3.6 percent over the comparable prior year quarter. Comparable store sales for the quarter increased 1.9 percent.

On a year-to-date basis, diluted earnings per share increased 22 percent to $1.81. Net income was $514 million, compared with $459 million ($1.48 per diluted share) for the first six months of fiscal 2010. Net sales were $8.4 billion, an increase of 3.4 percent. Year-to-date comparable store sales increased 1.6 percent.

These second quarter and year-to-date results are preliminary to the extent that they do not reflect the impact of any of the lease accounting corrections described below.

Kevin Mansell, Kohl's chairman, president and chief executive officer, said, "I am extremely pleased with our ability to deliver strong earnings growth in a challenging sales environment. Our gross margin rate increased significantly over second quarter of last year as a result of our increased penetration of private and exclusive brands and disciplined inventory management. Prudent expense management across many of our areas, especially in stores, allowed us to achieve lower-than-planned expense growth. We continue to benefit from strong profitability in our credit card partnership with Capital One as bad debt expenses declined significantly over last year."

Mansell added, "We are very excited about the introduction of our Jennifer Lopez and Marc Anthony brands which will launch in all stores nationwide and on-line in mid-September with our Anniversary sale. We believe that both brands will resonate strongly with our existing customers and drive new customers into our stores."

Quarterly Dividend Declared

On August 9, 2011, Kohl's Board of Directors declared a quarterly cash dividend of $0.25 per share of Kohl's common stock. The dividend is payable September 28, 2011 to shareholders of record at the close of business on September 7, 2011.

Store Update

Kohl's ended the quarter with 1,097 stores in 49 states, compared with 1,067 stores at the same time last year. During the first half of the year, Kohl's opened nine stores and completed the remodel of 85 stores. The Company expects to open an additional 31 stores and remodel an additional 15 stores next month.

Earnings Guidance

For the third quarter, Kohl's expects total sales to increase between 4 and 6 percent; comparable store sales to increase 2 to 4 percent; and gross margin as a percent of sales of down (10) basis points to up 10 basis points over last year. Selling, general and administrative expenses are expected to increase between 1.5 and 3 percent. Assuming share repurchases of approximately $500 million in the third quarter, achieving these assumptions would result in earnings per diluted share of $0.76 to $0.82 for the third quarter.

Must ReadView All

Textiles | On 26th Apr 2017

Kering's consolidated revenue growth rises 31.2% in Q1

The consolidated revenue growth for luxury group Kering for the first ...

Courtesy: SKF

Textiles | On 26th Apr 2017

SKF brings predictive maintenance for machinery to India

SKF India, a global supplier of bearings, seals, mechatronics,...

Textiles | On 26th Apr 2017

CITA to add insufficiently available fabric in CAFTA-DR

The Committee for the Implementation of Textile Agreements (CITA) has ...

Interviews View All

Sachin Sharma
Gem Enviro Management Pvt Ltd

There are no significant differences between virgin yarn and PET recycled...

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

'The blend of cotton–linen yarn has high demand in the domestic and...

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
April 2017

April 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search