27428 Thu, 02/28/2013 - 1:02pm
MENOMONEE FALLS, Wis.-Kohl’s ended its fiscal year with double-digit declines in net income for both the fourth quarter and the year.
Net income for the quarter ending on Feb. 2 dropped 16.9 percent to $378 million. For the fiscal year, net income totaled $986 million, down 15.5 percent from the previous year.
Net sales rose in both periods—up 5.4 percent to $6.3 billion in the quarter and up 2.5 percent for the year to $19.3 billion. Same-stores sales rose 2.5 percent in the quarter and 0.3 percent for the year. However—as Kevin Mansell, Kohl’s chairman, president and CEO explained—much of the sales gains came late in the fourth quarter “and, as a result, came at a cost to profitability.”
Partly as a result, gross margin in the quarter fell 287 basis points to 33.3 percent. Selling, general and administrative expenses were kept relatively in check, rising 2.9 percent in dollars but declining 46 basis points as a percentage of sales, to 19.1 percent.
Kohl’s also said it expects both and same-store sales in fiscal year 2013 to rise by between 0 and 2 percent.