Kohl’s Corp. registered gross margin improvement despite declines in profits and sales in the fourth quarter.
In the 13 weeks ended Feb. 1, the Menomonee Falls, Wis.-based midtier department store registered net income of $334 million, or $1.56 a diluted share, down 11.6 percent from the $378 million, or $1.66, logged in the final quarter of 2012. Kohl’s had projected earnings per share of $1.53 in updated guidance, and analysts, on average, expected EPS of $1.54.
Revenues declined 3.8 percent to $6.1 billion from $6.34 billion in the prior-year period. Comparable sales were down 2 percent, in line with earlier company comments. Gross margin rose to 34 percent of sales in the fourth quarter from 33.3 percent in the 2012 period.
Despite difficulties in its fulfillment centers and increased shipping costs tied to its e-commerce business, e-commerce sales increased 16 percent in the quarter, finishing the year with revenues of $1.7 billion, or about 8.9 percent of annual sales.
Kevin Mansell, chairman, president and ceo of Kohl’s, noted, “Our e-commerce sales have now almost doubled since 2011 and have increased at a compounded annual growth rate of almost 40 percent over the last five years.”
Mansell said Kohl’s inventory levels and assortment are “well positioned” as the firm makes the transition to the spring selling season. Inventory per store is down 4 percent on a unit basis, he added.
In initial 2014 guidance, Kohl’s said it expects EPS of between $4.05 and $4.45 on a comp performance that is flat to ahead 2 percent. Wesley McDonald, chief financial officer, said that, with the arrival of Juicy Couture for women and Izod for men in the fall, “we would expect fall to be a little bit better than spring.”
For the year just completed, net income dropped 9.8 percent to $889 million, or $4.05 a diluted share, while revenues declined 1.3 percent to $19.03 billion.
Shares of Kohl’s rallied 2.4 percent to close at $55.74 in New York Stock Exchange trading Thursday.
“What he has done at Vuitton is really exceptional,” said @gameofthrones’ actress Gwendoline Christie on @mrkimjones’ final show for @louisvuitton. “He has rebooted luxury in terms of making it commercial, viable and contemporary. And most importantly artistic. He has never compromised his artistic vision for the sake of commodity.” (📷: @zefashioninsider)
After seeing a demand for men’s wear from its customers, British contemporary women’s wear label @ariesarise has added a men’s wear component and will launch a unisex collection with @mrporterlive. The 20-piece collection includes jackets, denim, logo T-shirts and more with deconstructed ‘90s vibes. Set to launch on January 18, you can shop the pieces on Aries’ website and on mrporter.com. #wwdfashion
“And so spending so much time with a character who thinks like that, inevitability you try and analyze yourself and go back and think about your own demons and dark chapters that you had in your life,” says @thedanielbruhl of his role in TNT’s “The Alienist.” The show, set in the Gilded Age of New York, also stars Dakota Fanning and Luke Evans. Head to WWD.com to read about how 39-year-old Brühl prepared for the role and why he thinks the show is so relevant to today #wwdeye ( 📷: @Eriktanner)
Now that Celine Dion’s collection has topped $10 million in sales, the pop superstar, fashion icon and newly-minted industry player is eyeing growth in Asia. Read the full report by @tiffanyap, link in bio. #wwdnews #celinedion
“My personal philosophy to beauty is paying attention to oneself. I love to be outdoors, lots of fresh air, trying to take care of yourself as best you can. I always notice that comes through,” says Felicity Jones, the global face of @shiseido-owned @cledepeaubeauteus, which launches today. Head to WWD.com to read more about the actress’ love for beauty and how she prepared for her new role in “The Basis of Sex,” playing the young Ruth Bader Ginsburg. #wwdbeauty (📷: @dandoperalski)
Among the familiar faces at @off____white’s show was a surprise figure: Japanese artist @takashipom, pictured here on Wednesday morning. Other show-goers included @jerrylorenzo, who spoke about his upcoming project: a @nike collaboration for back to school, with designs inspired by his childhood on the West Coast. Sitting in the front row were Future, Don Crawley, @miguel and more. See the rest of the photos on WWD.com #wwdeye (📷: Stephane Feugere)
According to @laurentsai, former “Terrace House: Aloha State” cast member, she didn’t know she was auditioning for the Japanese version of “Real World.” “I was telling a couple of my friends and someone’s like, ‘That sounds a lot like Terrace House.’ I was like, ’No it can’t be.’” Turns out, it was. But Tsai isn’t just a reality star — she’s an illustrator who has worked with Starbucks Japan and most recently, she’s dipping her toes into the fashion world. Head to WWD.com to read about her time on the show, modeling and her art. #wwdeye (📷: @danieldorsa)
More changes are coming to New York Fashion Week: Beginning with the spring 2019 collection, @alexanderwangny will move his New York show to June from September, adopting a biannual schedule with collections shown in June and December. Additionally, the @cfda is planning for an official summer/winter fashion season taking place as soon as June and December 2018. Read more about the upcoming changes on WWD.com. #wwdnews #wwdfashion (📷: @slovekinpics)