Kohl's Same-Store Sales Fall in Tough Climate -- WSJ
February 24 2017 - 3:03AM
Dow Jones News
By Anne Steele
Kohl's Corp.'s revenue continued to decline in the final quarter
of the year, as same-store sales fell amid a tough environment for
department stores.
The retailer's profit fell much less than expected, though,
sending shares up 2.4% premarket to $42.78.
"Sales results were weak for the quarter in total, driven by
declines in brick-and-mortar traffic, and offset somewhat by
strength in online demand," Chief Executive Kevin Mansell said. He
pointed to merchandise-margin improvement and management of
inventory and expenses.
In 2017, he said, Kohl's will focus on becoming a destination
for active and wellness as it begins selling Under Armour Inc.
products in early March. Under Armour is trying to break out of
sporting goods and hopes a new casual-wear line and an expansion
into the midtier department stores will do the trick.
For fiscal 2017, Kohl's guided for earnings of $3.50 to $3.80 a
share, bracketing the average analyst estimate for $3.64, according
to Thomson Reuters. The retailer expects sales to be down 1.3% to
up 0.7%.
For the fiscal fourth quarter, Kohl's said sales at established
stores fell 2.2%--the fourth straight quarterly decline. The
retreat matched what analysts cited by Consensus Metrix were
expecting.
Kohl's, like other retailers, has been contending with
lackluster sales amid dwindling foot traffic, competition from
discount retailers and online vendors, and cautious consumer
spending.
In all for the quarter ended Jan. 28, Kohl's earned $252
million, or $1.44 a share, down from $296 million, or $1.58 a
share, a year earlier. Revenue fell 2.8% to $6.21 billion.
Analysts surveyed by Thomson Reuters expected earnings of $1.33
a share on revenue of $6.22 billion.
Write to Anne Steele at Anne.Steele@wsj.com
(END) Dow Jones Newswires
February 24, 2017 02:48 ET (07:48 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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