Kohls 4Q Income Drips 18 Percent

Atlanta Business Chronicle

Kohl’s Corp. reported net income for its fiscal fourth quarter ending Jan. 31 was $336 million, a decrease of 18.4 percent, as sales decreased 4.6 percent for the quarter.

The Menomonee Falls, Wis.-based retailer (NYSE: KSS) said Thursday that its earnings per share were $1.10, compared with $2.89 in the same quarter of the previous fiscal year. Comparable-store sales for the quarter decreased 9.1 percent.

For the 12 months ended Jan. 31, Kohl’s recorded a net income of $885 million, or $2.89 per share, compared with $1.1 billion, or $3.39 per share, for the year ending Feb. 2, 2008. Full-year net sales dipped 0.5 percent, to $16.4 billion, from $16.5 billion a year ago. Comparable-store sales decreased 6.9 percent for the same period.

“Despite the sales results, we delivered improved merchandise margins through strong inventory management and successful exclusive brand strategies,” Kohl’s president and CEO Kevin Mansell said. “We also managed expenses well while improving our store experience.”
Kohl’s executives expect 2009 “to be just as challenging from a macro-economic perspective,” Mansell said. He said the company is being conservative in its sales expectations, inventory levels and expenses.

Kohl’s issued its initial financial guidance for fiscal 2009 with the assumption that total sales will decrease 1 percent to 4 percent and comparable-store sales will decrease 5 percent to 8 percent. The company’s management expects earnings per share of $2.00 to $2.30 for the year. For the first fiscal quarter, the company said it expects earnings per share of 27 cents to 34 cents based on an assumption that comparable-store sales will be down 5 percent to 8 percent.

Kohl’s operates 1,004 stores in 48 states, including 21 stores in Atlanta. It plans to open metro Atlanta stores in Milton and Canton, Ga. this spring, bringing 300 jobs.