On back of improved comparable store sales, US based retailer and NYSE listed, Kohl’s Corporation posted better than expected results in the fourth fiscal quarter ended January 31, 2015.
In the fourth quarter of fiscal 2015, driven by higher sales and wise management of expenses and inventories, Kohl’s reported earnings of $1.83 per share, expanding 17 per cent from the prior-year quarter.
“Net sales for the reporting period rose 3.9 per cent year on year to $6.337 billion, primarily from a hike in comparable store sales,” the retailer said in a press release.
Comparable store sales grew 3.7 per cent in the fourth quarter of fiscal 2015 from higher transactions per store and an increase in average transaction value.
Kohl’s said this was, in fact, the first positive comparable store sales increase after persistent declines for more than a year.
According to the retailer, Kohl’s continuous efforts to improve its base business and its focus on the strategic initiative ‘Greatness Agenda’ turned around results in the quarter.
However, gross margin contracted 10 basis points to 33.9 per cent from the year ago quarter, while operating margin expanded 30 bps to 10.3 per cent.
For the full fiscal 2015, Kohl’s reported earnings of $4.24 per share, up 5 per cent from the prior fiscal, while sales at $19.02 billion were almost flat with the previous fiscal.
As of January 31, 2015, the retailer held $1.41 billion of cash and cash equivalents compared with $631 million as of November 1, 2014.
Kohl’s ended the quarter with long-term debt of $2.79 billion, flat from the fourth quarter of fiscal 2014.
The Kohl's board announced a 15 per cent increase in quarterly dividend to 45 cents per share, which will be paid on March 25 to shareholders as of record on March 11, 2015.
For the next fiscal, Kohl’s expects earnings per share in the range of $4.40–$4.60, higher than the prior-year earnings of $4.24.
The retailer also forecast sales to rise between 1.8-2.8 per cent driven by comparable stores sales growth of 1.5–2.5 per cent.
In fiscal 2015, Kohl’s operated 1,162 stores in 49 states and it opened seven stores, relocated two existing stores and closed three stores in the fiscal. (AR)
Fibre2fashion News Desk - India