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.
@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
“I just wanted to create this fully rounded character, but I do think what excited me most was just the opportunity to give a group of people representation that I feel needs it. I like to do characters in projects that stand for something and Karolina definitely does, so that was really exciting to me,” @ginnygardner says of her new role in @hulu’s “The Runaways.” Gardner plays Karolina Dean, a queer superhero, which is a rarity for @marvel. Read more about Gardner’s character on WWD.com #wwdeye (📷: @dandoperalski)
@heriethpaul and @gracebol have a moment on the @victoriassecret fashion show 2017. See every look from the runway on WWD.com. Link in bio. (📷: @giovanni_giannoni_photo) #wwdfashion #victoriassecret #VSFashionShow
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia