Kohl's Corporation reported results for the quarter ended May 1, 2010.
First Quarter Results Kohl's Corporation reported net income for the quarter ended May 1, 2010 of $199 million, or $0.64 per diluted share, compared with $137 million, or $0.45 per diluted share, a year ago. Net sales were $4.0 billion, an increase of 10.9 percent for the quarter. Comparable store sales for the quarter increased 7.4 percent.
Kevin Mansell, Kohl's chairman, president and chief executive officer, said, “We achieved our goal of gaining market share through our performance in both comparable and total sales growth in the first quarter. We improved our merchandise margins significantly through strong inventory management and successful private and exclusive brand strategies. Expenses were well managed while improving the store experience for our customers. I am very proud of our 130,000 associates and the role they played in these results and want to thank them for their hard work, loyalty and dedication in delivering on our promise to 'expect great things' from Kohl's."
Mansell added, “Consumers appeared to be a little more confident in their spending, but remain focused on value and ways to make their dollars go farther. We will continue to be flexible in our sales and inventory planning as well as expense management in order to react to changes in consumer demand.”
Expansion Update During the quarter, Kohl's successfully opened nine stores. The Company ended the quarter with 1,067 stores in 49 states, compared with 1,022 stores in 49 states at the same time last year. The Company expects to open an additional 21 stores later this year for a total of 30 stores in fiscal 2010. The Company completed the remodel of 17 stores during the quarter ended May 1, 2010 and expects to remodel an additional 68 stores later this year.
Earnings Guidance – Second Quarter and Fiscal 2010 The Company provided initial guidance for its second fiscal quarter ending July 31, 2010 of $0.70 to $0.75 per diluted share. The Company also updated its guidance for fiscal 2010 to $3.57 to $3.75 per diluted share, reflecting its first quarter results, from its initial guidance of $3.40 to $3.63 per diluted share.