MENOMONEE FALLS, Wis.–Kohl’s expects its sales to decline by from 1 percent to 4 percent in the second quarter.
In a conference call with analysts discussing the company’s first-quarter results, Kevin Mansell, president and chief executive officer, said the company is also forecasting a same-store sales drop of from 5 percent to 8 percent in this quarter, but that its gross margin will improve by from 20 to 30 basis points over the second quarter of last year. Selling, general and administrative expenses are expected to rise 3 percent to 4 percent, leading to earnings per share for the quarter of from 56 cents to 64 cents, Mansell said.
He also cited the launch of the Dana Buchman line of women’s apparel, accessories and footwear as a signature moment for Kohl’s in the first quarter. This collection may extend into other areas including home, Mansell said.
Also during the conference call, Larry Montgomery, Kohl’s chairman, said the retailer plans to open 56 new stores this fall, the vast majority of which will be former Mervyns sites. Kohl’s opened eight new stores in March and 11 in April. In addition, Montgomery said, the company plans to remodel 31 stores over the balance of 2009, bringing the total number of remodels for the year to 51, up from 36 in 2008.