Kohl's Q1 Net Down 4.5 Percent
MENOMONEE FALLS, Wis.-Slow sales through much of the first quarter contributed to a drop of 4.5 percent in Kohl's net income to $147 million.
Net sales in the quarter, which ended on May 4, fell 1 percent to $4.2 billion. This included a drop of 1.9 percent in same-store sales. Kevin Mansell, Kohl's chairman, president and CEO, said first-quarter sales were lagging in the beginning of the quarter, and began to pick up in April when the weather improved in the retailer's "most weather-sensitive regions."
Mansell also said Kohl's gross-margin performance and expense management proved better than the company expected in the quarter. Gross margin did increase 47 basis points to 36.4 percent. Selling, general and administrative expenses slipped 0.4 percent in dollars, although they did increase 12 basis points as a percentage of sales to 23.7 percent.
Projecting ahead, Kohl's said the second quarter would bring total sales growth of 1 to 3 percent and a same-store sales performance ranging from flat to up 2 percent.