Kohl's Comps Climb in January - Analyst Blog
February 06 2012 - 5:45AM
Zacks
Same-store sales at Kohl’s
Corporation (KSS) rebounded from December’s downfall as
it went up 0.6% in the four-week period ended January 28,
2012. However, same store growth was slower in January compared
with an increase of 1.4% in the year-ago period. Nonetheless, on a
year-to-date basis, same-store sales increased 0.5% in January
2012.
Strong management measures helped
the company achieve the expected sales in the month. On the other
hand, same-store sales at Kohl’s upscale competitor, Ross
Stores Inc. (ROST), for the four weeks ended January 28,
2012, grew 5% compared with a rise of 3% and 8% recorded for the
same period in 2010 and 2009, respectively.
In 2011, the company reportedly
reached its goal of achieving $1 billion in e-commerce sales. It
recently announced plans to build a fourth e-commerce distribution
center in Texas.
Total sales of Kohl’s climbed 2.4%
to $844 million for the five-week period ended January 28, 2012,
compared with an increase of 3.4% in the same period a year ago.
Further, on a year-to-date basis, total sales increased 2.2% to
$18,804 million, compared with $18,391 million in the prior year
period.
On the basis of January comparable
sales, Kohl’s has increased its fourth quarter diluted earnings per
share guidance from $1.70 - $1.73 to $1.79 - $1.80 and its fiscal
2011 guidance from $4.20 - $4.23 per diluted share to $4.29 - $4.30
per diluted share.
While the Northeast region was the
strongest region in the month, the mid-Atlantic and Southeast as
well as the Midwest region did not perform as per expectations. The
South Central and Southwest regions reported mid- to
high-single-digit decline.
E-commerce, Accessories and
handbags, as well Men's and home performed decently during the
month. Basics category was the strongest men's category with an
increase in the low teens. Men's casual pants, dress shirts and
young men's were also positive. However, Children's and footwear
underperformed the company average.
Kohl’s will report earnings for the
fourth quarter of 2011 on Thursday, February 23 at 7:00 a.m.
Eastern time.
Kohl’s, which operates 1,127 stores
in 49 states, holds a Zacks #4 Rank, which translates into a
short-term ‘Sell’ rating. Currently, we maintain a long-term
Neutral recommendation on the stock.
KOHLS CORP (KSS): Free Stock Analysis Report
ROSS STORES (ROST): Free Stock Analysis Report
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