Kohl's August Comp Sales Slip - Analyst Blog
September 06 2011 - 5:30AM
Zacks
Same-store sales at Kohl’s Corporation (KSS)
went down 1.9% in the four-week period ended August 27, 2011
compared with an increase of 4.5% in the year-ago period. On a
year-to-date basis, same-store sales increased 1.1% in August
2011.
Total sales declined 0.1% to $1,414.0 million for the four-week
period ended August 27, 2011 compared with $1,416.0 million in the
same period ended August 28, 2010. Further on a year-to-date basis,
total sales increased 2.9% to $9,824.0 million, compared with
$9,551.0 million for the prior year seven months ended August 28,
2010.
Sales were mostly affected by Hurricane Irene and generally
lower consumer traffic. However, Kohl’s is working aggressively on
its pricing focus for the remainder of 2011. Further, the company
believes that these steps, combined with the launch of the Jennifer
Lopez and Marc Anthony launches will have a favorable impact on
sales for the remainder of the year 2011.
However, same-store sales at Kohl’s peer company, Target
Corp. (TGT) went up 4.1% in August, 2011, while it
increased 3.1% in the seven months ended August 27, 2011. August's
comparable-store sales were in line with management’s
expectations.
During the second quarter of 2011, Kohl’s added 30 stores to
reach a total of 1,097 stores in 49 states, compared with 1,067
stores in the prior-year quarter. The company expects to open an
additional 31 stores and remodel 15 stores in September.
Guidance
Driven by strong profits in the second-quarter, Kohl’s expects
to increase its total sales forecast to 4% - 6%, and comparable
store sales forecast to 2% - 4% for fiscal 2011.
Conclusion
Kohl’s has had a consistent merchandise mix over the past three
years. In addition, the company’s pricing strategy and overall
profitability culture are focused on maintaining a low-cost
structure.
A strong balance sheet coupled with strong cash balances and
attractive dividend yields makes the stock attractive.
However, mid-priced retailers like Kohl's are struggling to combat
rising input costs.
Kohl’s holds a Zacks #3 Rank, which translates into a short-term
‘Hold’ rating. Currently, we maintain a long term Neutral
recommendation on the stock.
KOHLS CORP (KSS): Free Stock Analysis Report
TARGET CORP (TGT): Free Stock Analysis Report
Zacks Investment Research
Kohls (NYSE:KSS)
Historical Stock Chart
From Sep 2024 to Oct 2024
Kohls (NYSE:KSS)
Historical Stock Chart
From Oct 2023 to Oct 2024