DOW JONES NEWSWIRES
Kohl's Corp.'s (KSS) fiscal first-quarter earnings rose a
better-than-expected 45%, helped by the double-digit revenue jump
the company reported last week.
While the retailer raised its profit outlook for the year to
$3.57 to $3.75 a share from February's largely downbeat view of
$3.40 to $3.63, Kohl's also forecast current-quarter earnings of 70
cents to 75 cents a share, lower than the 88-cent consensus
estimate of analysts surveyed by Thomson Reuters.
Shares were down 2% at $56 in premarket trading. As of
Wednesday's close, the stock had risen 36% in the past year.
"Consumers appeared to be a little more confident in their
spending, but remain focused on value and ways to make their
dollars go farther," said Chairman and Chief Executive Kevin
Mansell.
The retailer--which sells midpriced apparel, accessories and
home decor--has seen sales improve recently as transactions per
store have risen. The company also has benefited from cost cuts and
the expansion of exclusive brands. In April, Kohl's raised its
first-quarter earnings guidance after reporting double-digit sales
growth for March.
For the quarter ended May 1, Kohl's reported a profit of $199
million, or 64 cents a share, up from $137 million, or 45 cents, a
year earlier. The company's raised view had called for 55 cents to
57 cents a share.
Results in the retail sector are expected to be vastly improved
over the moribund levels companies posted a year earlier during the
depths of the recession.
Gross margin rose to 38.1% from 37.6%.
Last week, Kohl's said revenue jumped 11% to $4.04 billion, and
same-store sales rose 7.4%, outpacing the retailer's downbeat
February forecast.
-By Nathan Becker, Dow Jones Newswires; 212-416-2855;
nathan.becker@dowjones.com