Kohls Corporation reported a 24.9% increase in net income for the fiscal first quarter ended May 5, 2007. Net income was $209.0 million, or 64 cents per diluted share, compared with $167.2 million or 48 cents per diluted share, in the year-ago period. Net sales increased 11.8% to $3.6 billion from $3.2 billion a year ago. Comparable store sales increased 3.9% for the same period.
Larry Montgomery, Kohls chairman and chief CEO, said, “We are pleased with our performance for the first quarter. All lines of business posted positive comparable sales increases as did all regions of the country. At the same time, we saw significant improvement in our gross margin rate and continued to manage our expenses with our sales growth.”
As a result of its first quarter performance, the company is raising its full-year earnings guidance from $3.68 to $3.84 per diluted share to $3.75 to $3.87 per diluted share for fiscal 2007. Kohl's reaffirmed its guidance for the second fiscal quarter of 81 cents to 85 cents per diluted share or a 17% to 23% increase over last year.
During the first quarter, KSS successfully opened 17 new stores, including its entry into the Idaho market with three stores.
The company now operates 834 stores in 46 states, compared with 749 stores in 43 states at the same time last year.
Kohl's will open the balance of its planned 110 to 115 stores for 2007 in the fall season.