Kohl's Inc. reported earnings declined 12 percent in the fourth quarter as comparable-stores sales slid 2.0 percent.
Kevin Mansell, Kohl’s chairman, president and chief executive officer, said, “We were pleased with our sales during the November and December holiday season as the customer responded favorably to our merchandise and values. Despite increased shipping costs related to our E-Commerce business, we were able to achieve our gross margin guidance for the quarter. We believe our inventory levels and assortment are well-positioned as we transition into the spring season.”
Impact of 53rd Week in Fiscal 2012
The retail calendar for fiscal January 2013 included a fifth week, resulting in a 14-week fiscal fourth quarter and a 53-week year. During this 53rd week, total sales were $169 million; selling, general and administrative expenses were $30 million; interest was $2 million; net income was $15 million and diluted earnings per share was $0.06.
Dividend
On February 26, 2014 Kohl's Board of Directors declared a quarterly cash dividend on the Company's common stock of $0.39 per share, an increase of 11 percent over its previous dividend. The dividend is payable March 26, 2014 to shareholders of record at the close of business on March 12, 2014.
Store Update
Kohl’s ended the quarter with 1,158 stores in 49 states, compared with 1,146 stores at the same time last year. During 2013, the Company opened 12 new stores and completed 30 remodels.
Earnings Guidance
The Company issued its initial guidance for fiscal 2014. Based on assumptions of total sales increases of 0.5 percent to 2.5 percent and comparable sales increases of 0 to 2 percent, the Company expects earnings per diluted share of $4.05 to $4.45 for the year.
