Kohl's Net Jumps 21 Percent in Third Quarter
MENOMONEE FALLS, Wis.-Net income for Kohl's finished the third quarter at $193 million, 21 percent higher than in the third quarter of last year.
The department-store retailer accomplished this on a gain of 6.5 percent in net sales, which totaled $4.1 billion in the quarter. This pickup, which included a same-store sales boost of 2.4 percent, offset a 4.6 percent increase in selling, general and administrative expenses, and a 5.5 percent increase in cost of merchandise sold.
Kevin Mansell, chairman, president and chief executive officer, said Kohl's positive quarter came in the face of "a very difficult environment." Mansell cited improvements in the company's inventory management and greater penetration for the company's "only at Kohl's" brands, both of which bolstered the company's cash flow and gross margins.
For the fourth quarter, Kohl's said it expects sales to increase by 3 percent to 6 percent. Same-store sales should range between a decline of 1 percent and a gain of 2 percent.