Kohl’s 1Q profit climbs, lifts full-year outlook
Thursday, May 12, 2011
MENOMONEE FALLS, Wis. (AP) — Kohl’s Corp.’s first-quarter net income climbed 6 percent as the department store chain controlled expenses and expanded its online business. The company also raised its full-year earnings outlook Thursday.
Kohl’s earned $211 million, or 73 cents per share, for the period ended April 30. That’s up from $199 million, or 64 cents per share, a year earlier.
The performance met the expectations of analysts surveyed by FactSet.
Kohl’s shares gained 39 cents to $54 in premarket trading.
Revenue rose 3 percent to $4.16 billion. Wall Street forecast revenue of $4.26 billion.
Revenue at stores open at least a year increased 1.3 percent. This figure is a key gauge of a retailer’s health because it excludes results from stores opened or closed during the year.
Chairman, President and CEO Kevin Mansell said in a statement that Kohl’s is on track to have $1 billion in online sales this year. The department store operator previously indicated that its online revenue climbed more than 50 percent last year.
The mid-price company is continuing to build on its Web business, buying its third online shipping center in Maryland that it plans to have running in time to support the critical holiday season. Kohl’s said in March that the Edgewood, Md. center should open in July, creating about 1,200 jobs over the next three years.
The two other distribution centers catering to online customers are in San Bernardino, Calif., and Monroe, Ohio.
Looking ahead, Mansell said Kohl’s should be able to capitalize on pent up demand for seasonal items in the second quarter. Late-arriving spring weather in parts of the country may have pushed some of those purchases back.
Kohl’s, based in Menomonee Falls, Wis., now expects full-year earnings of $4.25 to $4.40 per share, up from $4.05 to $4.25 per share. It anticipates second-quarter earnings of 96 cents to $1.02 per share. Analysts predict full-year earnings of $4.36 per share and second-quarter earnings of $1 per share.
On Wednesday Kohl’s declared a quarterly dividend of 25 cents per share. The dividend will be paid on June 29 to shareholders of record on June 8.
The retailer, whose exclusive brands include Dana Buchman and Hang Ten, runs 1,097 stores in 49 states.