KSS Kohls Corporation

Department store Kohl’s Corporation (KSS) has posted negative same-store sales results for the month of February compared with the prior year period. However, the total sales for the period increased, benefiting from the regions of the Midwest and Northeast.

Amid a challenging sales environment, Kohl’s comparable store sales dipped 0.8% for the four-weeks ended February 25, 2012, after an increase of 0.6% in January 2012. However, same-store sales of accessories along with men's and children's items were positive this month. The comparable store sales also went up 5.0% in the month of February a year-ago.

Besides, Kohl’s expects the comparable store sales to increase by 2% in fiscal 2012, driven by new product launches of Rock & Republic brand (launched in February 2012) and other brands of Jennifer Lopez and Marc Anthony launched in the third-quarter of 2011.

Kohl’s total sales climbed 1.1% in February 2012 to $1.17 billion from $1.16 billion in the year-ago period, owing to sales growth in the cold regions of Midwest and Northeast.

On the other hand, same-store sales at Kohl’s upscale competitor, Ross Stores Inc. (ROST) showed substantial improvement. Same-store sales for four weeks ended February 25, 2012 were 9%, above the February 2011 same-store sales. Net sales for the period marked an increase of 14% to $677 million from $595 million reported in the prior year period.

Kohl’s, which operates 1,127 stores in 49 states, 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
 
ROSS STORES (ROST): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research