Kohl's Corp. reported earnings slid 18 percent in the third quarter. Revenues dipped 1.0 percent while comparable-store sales declined 1.6 percent. It also said it expects comp declines of 2 to 4 in the fourth quarter.
|
|
Quarter | Year to Date | ||||||||||||||||||||
| ($ in millions) | 2013 | 2012 | Change | 2013 | 2012 | Change | ||||||||||||||||
Sales |
|
$ |
4,444 |
|
$ |
4,490 |
|
(1.0 |
)% |
|
$ |
12,932 |
|
$ |
12,937 |
|
– |
% |
||||
Comparable store sales |
|
(1.6 |
)% |
|
1.1 |
% |
|
– |
|
|
(0.9 |
)% |
|
(0.5 |
)% |
|
– |
|
||||
Net income |
|
$ |
177 |
|
|
$ |
215 |
|
|
(18 |
)% |
|
$ |
555 |
|
|
$ |
609 |
|
|
(9 |
)% |
Diluted earnings per share |
$ |
0.81 |
$ |
0.91 |
(11 |
)% |
$ |
2.51 |
$ |
2.54 |
(1 |
)% |
||||||||||
Kevin Mansell, Kohl's chairman, president and chief executive officer, said, “As we enter the Holiday season, we believe we are well-positioned from a merchandise content and inventory perspective to gain market share. We have increased our marketing spending and improved its impact and reach in order to drive higher traffic to our stores and on-line. Our customer will find the perfect gift for everyone on her shopping list at Kohl's and will be excited by the value she receives in both our only-at-Kohl's and national brands.”
Dividend
On November 13, 2013, Kohl's Board of Directors declared a quarterly cash dividend on the Company's common stock of $0.35 per share. The dividend is payable December 24, 2013 to shareholders of record at the close of business on December 11, 2013.
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. The Company opened three new stores during the third quarter and nine new stores during the first quarter of 2013. Additionally, the Company remodeled 30 stores in 2013.
Earnings Guidance
The Company provided initial guidance for the fiscal quarter ending February 1, 2014 of $1.59 to $1.74 per diluted share. The guidance is based on total sales declines of 2 to 4 percent and comparable store sales declines of 0 to 2 percent. The Company also updated its annual earnings per share guidance from $4.15 – $4.35 to $4.08 to $4.23. The Company also announced that it will provide only annual guidance beginning in Fiscal 2014.
