Kohl’s Corporation’s Q3 Profit Rises on Stronger Margins (KSS)

Kohl’s Corporation (NYSE: KSS), the Menomonee Falls, Wisconsin-based operator of family-oriented department stores, reported a 20% increase in its third-quarter profit, driven by continued sales growth and stronger margins. The retailer also raised its full-year earnings outlook following the strong third-quarter financial results.

For the third quarter ended October 29, Kohl’s posted a profit of $211 million, or $0.80 per share, compared with a profit of $176 million, or $0.57 per share reported for the same period in the previous year.

The company’s net sales for the third quarter were $4.4 billion, representing an increase of 3.8% over the same period in the previous year. Its comparable store sales for the third quarter rose 2.1%.

During the third quarter, Kohl’s opened 31 stores and completed the remodeling of 15 stores. At the end of the third quarter, the company had a total of 1,127 stores in 49 states.

Kevin Mansell, President and CEO of Kohl’s Corporation, said that the company’s gross margin rate increased over the last year as a result of its increased penetration of private and exclusive brands and disciplined inventory management. Mansell further said that the company is pleased with the expense management discipline across the board that allowed it to grow its expenses less than it originally planned. He added that the launch of the company’s Jennifer Lopez and Marc Anthony brands during the quarter met with the aggressive sales plans.

As a result of the strong third-quarter financial results, Kohl’s raised its guidance for the full-year. The company now expects full-year earnings to come in between $4.41 per share and $4.52 per share, compared with previous estimate of $4.34-$4.49 per share.

For the current quarter, the retailer expects earnings to come in between $1.93 per share and $2.04 per share on total sales growth of 4% to 6%. Same store sales are expected to rise 2% to 4% in the current quarter.

Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.