Kohl's Boosts First-Quarter Net 6 Percent
MENOMONEE FALLS, Wis.-First-quarter net income for Kohl's totaled $211 million, up 6 percent over the first quarter of last year.
Kevin Mansell, chairman, president and CEO, attributed the firming of the bottom line to Kohl's watchfulness over costs. Selling, general and administrative expenses increased 3.2 percent in dollars but just 10 basis points as a percentage of sales, to 25.7 percent. Gross margin finished the quarter, which ended on April 30, at 38.1 percent, dead even with last year's first quarter.
Net sales rose 3.1 percent to finish the quarter at $4.2 billion, and included a rise in same-store sales of 1.3 percent. Mansell said Kohl's expects the second quarter to see "pent-up demand for seasonal businesses which would allow us to achieve a better comp and even stronger financial results."
Mansell also said Kohl's is on track to achieve e-commerce sales of $1 billion this year. He said the company has purchased a third e-commerce fulfillment center in Maryland that will be ready to support the holiday 2011 season.