• Cecile Corral

Kohl’s comps step up on Q3, helped by home and traffic uptick

Net income dives

Menomonee Falls, Wis. – Kohl’s Corp.’s comps turned around in the third quarter, aided by inclining sales trends and strong in-store traffic.

Home took some of the credit for these encouraging trends.

“Our home business, which penetrates more highly in the fourth quarter than the rest of the year, is extremely strong, up mid single digits again in third quarter as it has been for the year,” noted ceo, president and chairman Kevin Mansell during the retailer’s earnings call today.

In the three-month period, ended Oct. 28, total sales inched up 0.1% to $4.33 billion from $4.32 billion, and comps improved year over year with a 0.1% gain compared to the 1.7% decline a year ago.

“We returned to a positive comp increase in the third quarter, and we continued with the steady improvement in sales results we’ve seen all year,” Mansell continued. “Driving traffic in one of the two key priorities for our company…there was sequential improvement again in our store traffic metrics, and this increase in traffic was the driver of our improved sales performance.”

While home was among the best performers in the quarter, nearly all categories saw improved sales trends, he added.

Net income was the Achilles heel for Kohl’s in Q3, dropping 20% to $117 million, or $0.70 per diluted share, compared to $146 million, or 83 cents per diluted share.

Year to date results included: a 29% jump in net income to $391 million, or $2.33 per diluted share, versus $303 million, or $1.68 per diluted share; a 1.3% net sales increase to $12.31 billion from $12.48 billion; and a 0.1% comp decline, which was nonetheless an improvement over the prior year’s 2.4% drop.

Kohl’s ended the quarter with 1,156 Kohl's stores in 49 states and four Off/Aisle clearance centers.

Cecile CorralCecile Corral | Senior Product Editor, Home Textiles Today
ccorral@hometextilestoday.com

Cecile B. Corral has been a product editor with Home Textiles Today since late 2000. She covers the area and accent rug, kitchen textiles, table linens, beach towels, decorative bath and decorative pillow categories, as well as some retail subjects.

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