Kohl’s Corp. and Nordstrom Inc. both reported lower second-quarter earnings that beat analysts’ expectations Thursday, but Kohl’s pushed second-half expectations upward while Nordstrom went in the opposite direction.
At Kohl’s, second-quarter earnings fell 12.3 percent to $236 million, or 77 cents a diluted share, from $269.2 million, or 83 cents, a year ago. Analysts were expecting the chain to earn 73 cents a share, according to Yahoo Finance.
Sales for the three months ended Aug. 2 inched up 3.8 percent to $3.73 billion from $3.59 billion. Comparable-store sales fell 4.6 percent.
The “results reflect strong inventory management and increased penetration of private and exclusive brands,” said Larry Montgomery, chairman and chief executive officer.
The firm’s gross margin rate expanded to 39.6 percent of sales from 38.9 percent.
During the first half, earnings dropped 18.7 percent to $389 million, or $1.26 a diluted share, on a 2.6 percent rise in sales to $7.35 billion.
For the full year, the Menomonee Falls, Wis.-based midtier retailer is looking for earnings of $3.02 to $3.18 a diluted share, up from previous projections of $2.95 to $3.15 a share.
Nordstrom outperformed analysts’ expectations for second-quarter profits despite a 20.6 percent decline, but trimmed second-half guidance.
With sales lower and markdowns higher, Seattle-based Nordstrom reported a 20.6 percent drop in net earnings to $143 million, or 65 cents a diluted share, compared with net earnings of $180 million, or 71 cents, in the year-ago period. Revenues for the three months ended Aug. 2 dipped 4.3 percent to $2.29 billion, versus $2.39 billion during the 2007 period. Analysts polled by Yahoo Finance expected EPS of 64 cents on revenues of $2.31 billion.
Same-store sales decreased 6 percent, but were down 9 percent at full-line stores. Same-store sales rose 6.3 percent at Nordstom Rack. At Nordstrom Direct, sales rose 14.6 percent.
Three of the company’s five annual sales events were held during the second quarter, the company said.
Gross margin decreased 168 basis points to 35 percent of sales from 36.6 percent a year ago.
For the six months, net earnings declined 22.3 percent to $262 million, or $1.19 a diluted share, from $337 million, or $1.30 a share, in last year’s first half. Net sales dropped 4.1 percent to $4.2 billion from $4.3 billion.
The retailer anticipates third-quarter earnings per diluted share to be in the range of 49 to 54 cents with same-store sales down 4 to 6 percent. For the fiscal year, the company revised guidance to $2.25 to $2.65, down from the previous range of $2.65 to $2.80. Gross margins are expected to be 110 to 140 basis points lower than in fiscal 2007, greater than the previously announced 60 to 90 basis point decrease.
The annual Veuve Clicquot Polo Classic in Pacific Palisades this weekend drew Kate Hudson, Tracee Ellis Ross, Laura Dern and more. See pictures of the star-studded event on WWD.com. (📷: @chelsealaurenla) #wwdeye
In his new book “Hollywood Royale,” Andy Warhol’s Protégé Matthew Rolston celebrates the Eighties revival of Hollywood glamour. Featuring more than 100 portraits taken by Rolston from 1977 to 1993, the book contains photos of icons like Michael Jackson, Cyndi Lauper, and @drewbarrymore, pictured here in 1991. “Hollywood Royale,” out today, will be accompanied by an exhibition opening at Los Angeles’ Fahey/Klein Gallery on March 1. #wwdeye
"Nowadays when life is not so happy with everything going on in the world, I think people come to me for a little bit of whimsy and color and fun." - Designer Rebecca De Ravenel on her cult-favorite jewelry line. (📸 : @vsteves) #wwd40
“Everyone is talking about how the retail industry is struggling, but I think it’s an incredible time because brands who are doing something different and innovative are setting themselves up for the future,” said @adamgoldston, who founded the luxury athletic brand @apl with his brother @ryangoldsten. The Goldston’s are part of WWD’s 40 under 40: a group of industry notables. See the rest of the list on WWD.com. (📷: @vsteves) #wwd40
@eyeswoon blogger Athena Calderone debuted her first-ever cookbook, “Cook Beautiful,” which is heavily centered on the presentation and visual expression of food. Pictured here are her miso glazed carrots from the book. Get the recipe on WWD.com. (📷: @johnny_miller_) #wwdeye
“It’s passion that helps get anybody to a certain point and it’s what’s propelled me,” said Kith founder @ronniefieg, one of WWD’s 40 under 40: a group of industry notables who are changing the face of retail, fashion and beauty. Fieg, who opened a Manhattan flagship on October 7, began his career at age 13 as a stock boy and salesman for footwear chain David Z. “I think staying true to [my] beliefs, hard work and passion have gotten me to where [Kith] is today.” See the rest of the 40 at WWD.com. (📷: @vsteves) #wwd40
25-year-old @samweaving is about to break out this fall, starring in Netflix’s horror film “The Babysitter,” fittingly out today on Friday the 13th. That’s not the only place you’ll be seeing her, though — Weaving’s got a role Showtime’s “SMILF” and another alongside Frances McDormand and Woody Harrelson in “Three Billboards Outside Ebbing, Missouri.” Though she’s got a full plate at the moment, there’s one role she’s got her eye on: Marilyn Monroe. “I’m a little too young at the moment, but it’s on my bucket list,” the actress told WWD (📷: @dandoperalski) #wwdeye
BFF's Poppy Jamie and Suki Waterhouse celebrated the launch of their bag line Pop x Suki at Nordstrom last night. "The line is really about our friendship, and how we are so different but complement each other," said Waterhouse. 👯 (📷: Katie Jones) #wwdeye
After designing the new @louisvuitton and @bulgariofficial flagships and a @chanelofficial boutique opening in Japan, @petermarinoarchitect has another project on his plate: The Lobster Club. Located in the Seagram Building, it’s the famed architect’s first restaurant project in New York, serving up modern Japanese brasserie-style cuisine. Bronze hues, bespoke material detailing, blush and chartreuse tones and a heavy emphasis on Picasso can be seen throughout. Mark your calendars for Nov. 1 for the much-anticipated opening. (📷: @clint_spaulding) #wwdeye