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Kohl's Corp net income climbs 27.4% in Q2

12 Aug '05

3 min read

US department store chain, offering online shopping for clothing and household goods, Kohl's Corporation reported net sales and earnings for the second quarter ended July 30, 2005.

Kohl's Corporation reported a 27.4 percent increase in net income for the quarter ended July 30, 2005. Net income was $187.2 million, or $0.54 per diluted share, compared to $146.9 million or $0.43 per diluted share a year ago. Net sales for the quarter increased 15.6 percent to $2.9 billion from $2.5 billion a year ago. Comparable store sales increased 5.1 percent for the same period.

For the six months ended July 30, 2005, net income increased 24.8 percent to $311.9 million or $0.90 per diluted share, compared to $250.0 million or $0.73 per diluted share for the six months ended July 31, 2004. Net sales increased 15.4 percent to $5.6 billion from $4.9 billion a year ago. Comparable store sales increased 4.4 percent for the same period.

Two items impacted second quarter and year-to-date earnings in the current year. $4.9 million due to the resolution of certain state tax matters favorably impacted the Company's income taxes. The Company's gross margin was favorably impacted by $2.4 million due to a decision to change its method of accounting for inventory from the last in, first out method (LIFO) to the first in, first out (FIFO) method.

Last year's results reflect the Company's decision to adopt expensing of stock options, which began in the first quarter of fiscal 2005. In accordance with the modified retrospective method, the prior year's results for both the quarter and year-to-date have been restated.

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