Kohl's sees improved sales, earnings in Q2
MENOMONEE FALLS, Wis. Kohl’s reported net income for the quarter ended July 31 of $260 million, or 84 cents per diluted share, compared with $229 million, or 75 cents per diluted share, a year ago. Net sales were $4.1 billion, an increase of 7.7% for the quarter. Comparable-store sales for the quarter increased 4.6%.
For the six months ended July 31, net income increased 25% to $459 million, or $1.48 per diluted share, compared with $368 million, or $1.20 per diluted share, for the six months ended Aug.1, 2009. Net sales increased 9.3% to $8.1 billion from $7.4 billion a year ago. Comparable store sales increased 5.9% for the same period.
Kevin Mansell, Kohl’s chairman, president and chief executive officer, said “We are pleased with our financial results for the second quarter. We continue to gain market share as reflected in our performance in both comparable and total sales growth. This sales performance, along with strong inventory management, allowed us to continue to increase our gross margin rate. We are particularly pleased by our leverage in store payroll and marketing which offset our important long-term investment in e-commerce in the second quarter and resulted in us delivering a better overall expense result. “
For the third quarter, the company expects total sales to increase between 4.5% and 6.5%; comparable-store sales to increase 2% to 4%; and gross margin as a percent of sales to increase 20 to 40 basis points over last year.
The company’s updated guidance for fiscal 2010 is $3.57 to $3.70 per diluted share.