Kohl’s Corp.’s fourth-quarter profits declined 18.4 percent, but a greater emphasis on proprietary brands provided a recessionary bright spot.
In the three months ended Jan. 31, net income fell to $336 million, or $1.10 a diluted share — beating the Yahoo Finance analyst consensus estimate of $1.03 — from $412 million, or $1.31, in the year-ago period. Sales declined 4.6 percent, to $5.24 billion from $5.49 billion, and decreased 9.1 percent on a same-store basis. Accessories, footwear, men’s wear and children’s wear outperformed for the quarter and year, while women’s wear and home fared poorly.
President and chief executive officer Kevin Mansell said Thursday that exclusive labels such as Simply Vera by Vera Wang, Chaps, Tony Hawk, Daisy Fuentes and Fila have had “high consumer acceptance.”
The introductions of Dana Buchman, which hit stores on Presidents’ Day, and Hang Ten, slated to make its debut in 300 warm-weather stores in April, are expected to build on this success. Company executives did not rule out adding more exclusive labels, but declined to be more specific. Mansell said in the last three years the company has introduced a variety of brands and this strategy will continue, including “a couple this spring.”
“The customer responds well to new brand launches,” he said. “And we have room to grow on our exclusive brand front.”
Mansell said the penetration of exclusive and private brands grew 105 basis points in the fourth quarter to 40.3 percent of sales, “primarily due to our exclusive national brands.”
For the year, profits also fell 18.4 percent, to $885 million, or $2.89 a diluted share, from $1.08 billion, or $3.39, in 2007. Sales inched down 0.5 percent to $16.39 billion from $16.47 billion.
For the first quarter, the company expects diluted earnings per share at 27 to 34 cents, based on the assumption of a same-store sales decrease in the range of 5 to 8 percent.
“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)