MILWAUKEE — Kohl’s Corp. chairman and chief executive officer Kevin Mansell told shareholders at the retailer’s annual meeting here that the company “fell short” of objectives in 2011, but emphasized high rankings from shopper surveys and gains in Internet sales.
“We were outperformed by some competition,” Mansell said of the company’s financial results. “Not to say there weren’t successes.”
Kohl’s remodeled stores, improved its online experience for shoppers, reached its goal of $1 billion in online sales, opened a new fulfillment center and successfully launched Jennifer Lopez and Marc Anthony fashion lines, Mansell said.
In a conference call with analysts earlier in the day, Mansell said the company’s own execution was to blame for lagging sales in the first quarter.
He declined to speculate on whether J.C. Penney Co. Inc.’s new “fair and square” pricing strategy took sales from Kohl’s, saying he would need to see Penney’s first-quarter results, due out next week, before making a judgment.
Specialty stores did a much better job with the color denim trend in the first quarter, Mansell said on the call.
“There’s no way we had anywhere near enough depth on it,” he said.
The ceo also said the March heat wave drove such strong sales of seasonal goods that there was an inventory shortage in April.
Kohl’s on Thursday reported a 23.4 percent decrease in net income for the first quarter ended April 28, to $154 million, or 63 cents a diluted share, from $201 million, or 69 cents, a year earlier. Sales were up 1.9 percent, to $4.24 billion, while comparable-store sales increased 0.2 percent for the quarter.
Price cuts needed to drive sales were to blame for lower gross margins, the firm noted.
The company also said Thursday that it is testing a new store prototype that introduces furniture and lamps — items Kohl’s has been selling on its Web site. Test stores are located in Atlanta, Houston and Salt Lake City.
The furniture departments took over space from the children’s clothing department, chief financial officer Wes McDonald said during the call. The goal, he said, is to increase sales per square foot by $10 to $230.
Shareholders at the meeting soundly rejected — with only 3 percent in favor — a proposal from the Humane Society of the United States encouraging Kohl’s to develop a policy prohibiting the sale of animal fur in its stores. A shareholder proposal mandating that Kohl’s board make public its executive succession plan and another that would have required executives to retain their stock for a period of time after leaving the company also were rejected.
@fearofgod and @maxfieldla have teamed up on a pop-up installation. The store, located in the gallery space across from Maxfield’s Melrose Ave location, is the site of the brand’s House of God pop-up in which Fear of God founder @jerrylorenzo has created a church-inspired installation. A dozen vintage church pews sit in front of an LED screen playing 90s gospel singers in an effort to re-create an environment akin to a Southern Baptist Church, Lorenzo explained. Read more about the pop-up on WWD.com #wwdfashion (📷: Jennifer Johnson)
Known for his sleek, sophisticated American glamour, Norman Norell is the subject of an upcoming exhibition at @fitnyc. “Norell: Dean of American Fashion,” which runs from February 9 through April 14, will feature approximately 100 ensembles and accessories. His best work is exemplified by the designer’s glittering “mermaid” gowns frosted with thousands of hand-sewn sequins – like the one pictured. (📷: William Helburn) #wwdfashion
For pre-fall 2018, @balmain didn’t let go of the glitz. A crystal embroidered baseball jacket priced at around $40,000 hangs in the “couture” section of the brand’s first men’s pre-collection. Sporting the words “Balmain Army” across the back, the item took around two months to make. “When it was completed, it was like Christmas, it was like, ‘It’s done, it’s exactly what I wanted,’” said Balmain’s creative director @olivier_rousteing during a tour of the collection in a Paris showroom on Monday. #wwdfashion
Eighty degree temperatures and outdoor installations at the annual Art Basel Miami Beach called for bright, elevated beachwear. See more street style pictures on WWD.com. #theyarewearing #ABMB (📷: @lifeinreverie)
Following September’s emotional tribute to her brother Gianni, Donatella Versace wanted to bring the spring show’s deep sense of intimacy to her @versace_official pre-fall collection. Donatella found inspiration in Versace Palazzo in Milan and from Gianni’s opulent apartment. Archival patterns and new motifs were splashed on silk shirtdresses and fitted jersey frocks. See the rest of the photos on WWD.com. #wwdfashion
Demna Gvasalia continues to shake up the Paris fashion calendar — and experiment with new runway timetables for his @vetements_official brand. WWD has learned that Vetements plans to stage its next coed show for the fall 2018 season on January 19 during Men’s Fashion Week in the French capital. Details about the timing and venue have not been confirmed — stay tuned on WWD.com to catch the latest. #wwdnews (📷: @giovanni_giannoni_photo)
@zacposen's go-to holiday gift? Cookies! "I'll usually bake cookies and send them as a gift," said the designer, who recently released his cookbook "Cooking With Zac: Recipes from Rustic to Refined." Get the recipe for his Brown Butter-Chocolate Chip Cookies via link in bio 🍪🍪🍪 #wwdeye #cookingwithzac
For @monsemaison’s pre-fall 2018 collection, Fernando Garcia and Laura Kim honed in on the brand’s many signatures — men’s wear, which was tweaked and feminized through deconstruction, proportion play and lots of bare shoulders. See the rest of the photos on WWD.com #wwdfashion (📷: George Chinese)
On Friday night, @yohjiyamamotoofficial received the Design for Asia Lifetime Achievement Award in Hong Kong. The 75-year-old designer has been celebrated for many years and is best known for his dark and avant-garde tailoring. “In my long career, in design, architecture, [I’ve been to] so many parties, this is the very first time that I have such a warm feeling, I really appreciate this,” Yamamoto said. #wwdfashion (📷: @dominiquemaitre)