Kohl’s 2Q profit surges, topping forecasts
NEW YORK (AP) — Kohl’s Corp. reported a surge in second-quarter profit, topping expectations, as it cut some costs and moved away from hefty charges for store closures.
The Menomonee Falls, Wisconsin-based company’s profit jumped 49 percent to $208 million, or $1.24 per share. The department store operator reported a $128 million charge a year ago for store closures.
Revenue fell just under 1 percent to $4.14 billion.
The results beat Wall Street expectations. The average estimate of nine analysts surveyed by Zacks Investment Research was for earnings of $1.19 per share. Revenue met forecasts.
The department store operator said same-store-sales — or sales in stores open a year, a key measure of a retailer’s health — fell 0.4 percent during the quarter. Still, President and CEO Kevin Mansell said foot traffic increased during the quarter.
The company is trying to attract more shoppers by offering more outside brands and cutting some of its in-house clothing brands. It plans on selling Clarks shoes for the back-to-school shopping season and is looking for other brands to add to store aisles. The chain has said it will still offer the best-selling of its private-label brands, such as Sonoma, Croft & Barrow and Apt. 9, but others might get the boot or be reduced.
Kohl’s shares have decreased 15 percent since the beginning of the year, while the Standard & Poor’s 500 index has climbed 11 percent. The stock has climbed 11 percent in the last 12 months.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on KSS at https://www.zacks.com/ap/KSS
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