MENOMONEE FALLS, Wis.–Net income for Kohl’s totaled $229 million in the second quarter, 3 percent off from the second quarter of last year.
Net sales rose 2.2 percent in the quarter, to $3.8 billion, and Kohl’s gross margin was up slightly, to 40 percent of net sales. However, selling, general and administrative expenses increased by 3.9 percent, and the retailer also posted rises in depreciation and amortization and preopening expenses. Same-store sales for Kohl’s declined 2.3 percent.
The numbers put Kevin Mansell, Kohl’s president and chief executive officer, in a positive mood. “Sales for the first half of 2009 exceeded our plans and indicated market-share gains across most merchandise areas and regions,” Mansell said in a company statement. “In addition, we continue to experience improvements in inventory management and increased penetration in only-at-Kohl’s brands that have led to improved gross margins.”
For the third quarter, Kohl’s expects total sales to range from down 1 percent to up 1 percent. The company, which ended the quarter with 1,022 stores in 49 states, said it expects to open 37 more stores later this year, and to have completed 51 store remodels by the end of August.