Kohls Corporation reported net income for the quarter ended May 2, 2009 of $137 million, or 45 cents per diluted share, compared with $153 million, or 49 cents per diluted share, a year ago. Net sales were $3.6 billion, an increase of 0.4% for the quarter. Comparable store sales for the quarter decreased 4.2%.
Kevin Mansell, Kohls president and CEO, said, “We achieved our goal of gaining market share through our performance in both comparable and total sales in the first quarter. Our merchandise margins improved through strong inventory management and successful exclusive brand strategies. We also managed expenses well while improving our store experience. We continue to expect 2009 to be challenging from a macro-economic perspective and, therefore, remain conservative in our sales expectations, inventory levels and expenses. We are focused on gaining market share in this difficult environment.”
Expansion Update
During the quarter, Kohls successfully opened 19 stores. The company ended the quarter with 1,022 stores in 49 states, compared with 957 stores in 47 states at the same time last year. The company expects to open an additional 37 stores later this year for a total of 56 stores in fiscal 2009. The company completed the remodel of 32 stores during the quarter ended May 2, 2009 and expects to remodel an additional 19 stores later this year.
Earnings Guidance Second Quarter and Fiscal 2009
The company provided initial guidance for its second fiscal quarter ending Aug. 1, 2009 of 56 cents to 64 cents per diluted share. The company also updated its guidance for fiscal 2009 to $2.19 to $2.42 per diluted share, reflecting its first quarter results, from its initial guidance of $2.00 to $2.30 per diluted share.
| Kohl's Corporation | |||||||||||||
| Condensed Consolidated Statements of Income | |||||||||||||
| (In Millions, except per share data) | |||||||||||||
| (Unaudited) | |||||||||||||
| Subject to Reclassification | |||||||||||||
| Three Months | |||||||||||||
| (13 Weeks) Ended | |||||||||||||
| % to | % to | ||||||||||||
| May 2, | Net | May 3, | Net | ||||||||||
| 2009 | Sales | 2008 | Sales | ||||||||||
| Net sales | $ | 3,638 | $ | 3,624 | |||||||||
| Cost of merchandise sold | 2,270 | 62.4% | 2,289 | 63.2% | |||||||||
| Gross margin | 1,368 | 37.6% | 1,335 | 36.8% | |||||||||
| Operating expenses: | |||||||||||||
| Selling, general, and administrative | 961 | 26.4% | 923 | 25.5% | |||||||||
| Depreciation and amortization | 141 | 3.9% | 130 | 3.6% | |||||||||
| Preopening expenses | 15 | 0.4% | 11 | 0.2% | |||||||||
| Operating income | 251 | 6.9% | 271 | 7.5% | |||||||||
| Interest expense, net | 32 | 0.9% | 26 | 0.7% | |||||||||
| Income before income taxes | 219 | 6.0% | 245 | 6.8% | |||||||||
| Provision for income taxes | 82 | 2.2% | 92 | 2.6% | |||||||||
| Net income | $ | 137 | 3.8% | 153 | 4.2% | ||||||||
| Basic net income per share | $ | 0.45 | $ | 0.50 | |||||||||
| Average number of shares | 305 | 309 | |||||||||||
| Diluted net income per share | $ | 0.45 | $ | 0.49 | |||||||||
| Average number of shares | 306 | 309 | |||||||||||
