Kohl's Bottom Line Up 20 Percent in Third Quarter
MENOMONEE FALLS, Wis.-Third-quarter net income for Kohl's totaled $211 million, up a robust 20 percent over the third quarter of last year.
With sales still challenged by the economic environment, much of Kohl's bottom-line performance came from the company's disciplined control over costs. Selling, general and administrative expenses rose by a meager 1.1 percent in dollars and dropped back 64 basis points as a percentage of sales, to 24.5 percent. The increased penetration of private and exclusive brands, along with stringent inventory management, pushed Kohl's gross margin up 12 basis points to 38.6 percent.
Net sales rose 3.7 percent to $4.4 billion, which included a same-store sales gain of 2.1 percent. The third quarter for Kohl's saw the debut of its Jennifer Lopez and Marc Anthony brands, which in the case of the Lopez line included home products, "met our aggressive sales plans," said Kevin Mansell, chairman, president and CEO. "We expect our collection of powerful brands, supported by significant marketing investments, especially in broadcast and digital media, to deliver a strong holiday season," Mansell said.