Kohl's Corp.'s (KSS) fiscal fourth-quarter earnings fell 7.9% as
the department-store chain was hurt by a disappointing holiday
sales season, leading to its first revenue decline in roughly three
years.
However, on a per-share basis, the bottom line improved by 9% as
shares outstanding were down 15% from a year earlier.
For the current quarter, the company forecast per-share earnings
of 60 cents on a total sales increase of 3%, below recent estimates
of analysts polled by Thomson Reuters for a profit of 77 cents and
revenue growth of 4% to $4.31 billion.
For the year, the company projected per-share earnings of $4.75
on a total sales increase of 4.5%. Analysts recently expected
earnings of $4.95 and revenue growth of 4% to $19.56 billion.
Kohl's operates 1,127 stores, up 3.4% from a year earlier. The
retailer recorded an unexpected same-store sales decline during the
holiday season, a period that proved far less robust than many
retailers had anticipated.
Department-store chain Macy's Inc. (M)--one of the
exceptions--recently reported its fourth-quarter profit grew 12%
with help from strong holiday results. Peer J.C. Penney Co. (JCP)
which has been revamping itself, reports its fourth-quarter results
Friday.
Chairman and Chief Executive Kevin Mansell said Thursday that
"we were able to navigate a difficult holiday sales season through
strong expense and inventory management."
For the quarter ended Jan. 28, Kohl's reported a profit of $455
million, down from $494 million, a year earlier. However on a
per-share basis, earnings were up at $1.81 from $1.66. The company
recently raised its earnings guidance to $1.79 to $1.80.
Gross margin eased to 36.2% from 36.8%.
Kohl's recently reported that total sales edged down 0.3% to
$6.02 billion. Same-store sales were down 2.1%.
Shares closed Wednesday at $52.19 and were inactive
premarket.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
Tess.Stynes@dowjones.com