Kohl’s Inc. reported earnings declined 15 percent in the fourth quarter, to $252 million, or $1.44 a share. Revenues were down 2.8 percent to $6.2 billion, with same-store sales off 2.2 percent.

Kevin Mansell, Kohl’s chairman, chief executive officer and president, said, “Sales results were weak for the quarter in total, driven by declines in brick and mortar traffic, and offset somewhat by strength in online demand. We saw improvement in merchandise margin, and our team continued to manage inventory and expenses extremely well. In 2017, we will accelerate our focus on becoming the destination for active and wellness with the launch of Under Armour in early March. We will also extend our efforts on improving our speed to market across all of our proprietary brands into all apparel areas and home.”

Dividend
On February 22, 2017, the Kohl’s board of directors declared a quarterly cash dividend on the company’s common stock of 55 cents per share, a 10 percent increase over its prior dividend. The dividend is payable March 22, 2017 to shareholders of record at the close of business on March 8, 2017.

Store Update
Kohl’s ended the fiscal year with 1,154 Kohl’s stores in 49 states. During 2016, the company:
• Opened 9 small format Kohl’s stores
• Closed 19 Kohl’s stores
• Opened two Off/Aisle locations
• Opened 12 Fila outlets

Initial 2017 Earnings Guidance
The company expects earnings per diluted share of $3.50 to $3.80 for fiscal 2017. This guidance is based on the following assumptions:
• Total sales change of (1.3) percent to 0.7 percent, which includes sales of approximately $160 million in the 53rd week.
• Comparable sales change of (2) percent to 0 percent.
• Gross margin as a percentage of sales to increase 10 to 15 basis points over 2016.
• SG&A dollars to increase 0.5 percent to 2 percent over 2016. Excluding the 53rd week in 2017, the company expects SG&A dollars to increase 0 percent to 1.5 percent. SG&A dollars in the 53rd week are expected to be approximately $25 million.
• Depreciation expense of $960 million.
• Interest expense of $300 million.
• Effective tax rate of 37.5 percent.
• $350 million in share repurchases.
• Capital expenditures of $700 million.