Kohl's Net Falls 17.7 Percent in Q3
MENOMONEE FALLS, Wis.-Declines in both sales and margins pressured Kohl's bottom line to a 17.7 percent shortfall, totaling $177 million, in its fiscal third quarter ending on Nov. 2.
Net sales were down 1 percent to $4.4 billion, including a drop of 1.6 percent in same-store sales. Gross margin was off 64 basis points to 37.5 percent. Selling, general and administrative expenses, essentially flat with the third quarter of last year, rose 15 basis points as a percentage of sales to 24.2 percent.
Commenting on the upcoming holiday season, Kevin Mansell, Kohl's chairman, president and CEO, said the department-store retailer has bumped up its marketing spending "and improved its impact and reach in order to drive higher traffic to our stores and online." Mansell added that the company is "well positioned from a merchandise content and inventory perspective to gain market share."
For this fiscal year as a whole, Kohl's is now forecasting a total sales decline of from 2-4 percent, with same-store sales ranging from flat to down 2 percent.