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.
My character, Dinah Madani, is just the coolest, [most] badass woman imaginable," says @amberroserevah. The actress stars in @marvel's newest series on @netflix, @thepunisher. To prepare for her role, Revah sat down with Homeland agents to get a real sense of with Dinah's day-to-day life is really like. Read our full interview on WWD.com. #wwdeye (📷: @jilliansollazzo)
A scene from the 91st annual @macys Thanksgiving Day Parade. The parade, which boasts 50 million TV viewers and 3.5 million on-site spectators, is considered one of the largest and most watched parades in the world. (📷: Jason Szenes/EPA-REX)
The circus came to @bloomingdales 59th Street on Tuesday night and lit up Lexington Avenue with acrobatic dancers, death-defying knife throwing, sword swallowing and aerial acts with no net. The 45 minutes of theatrics built up to unveiling the holiday windows depicting @swarovski crystal-encrusted circus pieces and scenes from “The Greatest Showman” – songs from the soundtrack included. See the rest of the photos on WWD.com #wwdfashion (📷: Joshua Scott)
The psychedelic fashion that pervaded the ’60s is back with an exhibit at the @museumofcityny. “Mode New York: Fashion Takes a Trip” chronicles the changing styles from 1960 through 1973 and features designers such as @ysl, @oscardelarenta and more. The exhibition, which is on display through April 1, is organized into four periods: First Lady Fasion, Youthquake, New Bohemia and New Nonchalance. Pictured here is model Pat Bardonella during the Garvey Day Parade in 1968. (📷: @kwamebphoto) #wwdeye #wwdfashion
“People should be a lot more honest in expressing both the dark and light of themselves. We need to give each other the space to do that because it’s the only way we can grow and evolve,” says @noelwells of her new film “Mr. Roosevelt,” which is largely based on her own struggles. Unexpectedly leaving @nbcsnl in 2014 after just one season, Wells felt set back in her self-esteem and career trajectory. She quickly refocused her energy to more personal projects, which led to the completion of “Mr. Roosevelt.” Read the rest of WWD’s interview with the “Master of None” actress on WWD.com #wwdeye (📷: @jilliansollazzo)
@barbrastreisand is giving fans a chance to see her perform up close in a new concert series, which makes its debut on @Netflix today. From behind-the-scenes takes to her concert performance in Miami last December, the two-hour streaming special captures Streisand in her element. Pictured here is the singer/actress photographed for WWD in 1963. (📷: Palmieri Tony) #wwdeye #wwdarchive
@chanel and @pharrell dropped what’s being dubbed as the world’s most exclusive sneakers yesterday. The Adidas Originals NMD Hu, which Williams designed in collaboration with Chanel and @adidasoriginals, has a waiting list of over 120K people who pre-registered online at chanelatcolette.fr –– and only 500 pairs are on sale. The singer predicted the resale value of the shoes could reach $40K. Read the full interview on WWD.com. Link in bio. #wwdfashion (📷: Dominique Maître)
@imanshumpert is diving deeper into his creative endeavors and relaunching his clothing line, Post 90s, and is helping to raise money for the hurricane victims in St. Maarten with a jersey he’s designed with his brother. The Cleveland Cavaliers player talked to WWD about kneeling during the national anthem, working with fashion brands and how he wants to be more than an @nba player. Read the interview on WWD.com #wwdfashion (📷: George Chinese)