At its annual shareholders' meeting in Menomonee Falls, Wis., on Wednesday, Kohl's emphasized expansion and the development of exclusive merchandise, while crowing about strong financial results.
For the 12 months ended Feb. 3, net income at the 834-unit chain increased 31.7 percent, to $1.1 billion, compared with $842 million the previous year. Earnings per share increased 36 percent in fiscal 2006 versus fiscal 2005. Total sales advanced 16 percent, to $15.5 billion from $13.4 billion in the year-ago period. Comp-store sales rose 5.9 percent.
Kohl's, which opened 85 units last year, plans to unveil 110 to 115 stores this year, including stores in new markets such as Idaho and Wyoming. Kohl's has said it plans to operate more than 1,200 stores by 2010. The company said it believed all regions in the U.S had significant growth potential.
The retailer in the fall introduced a prototype that features new merchandise displays for fashion trends, directional signing, larger fitting rooms with lounge areas and redesigned customer service and checkout stations. The store design is being implemented in new stores as well as renovated units.
Like all retailers, Kohl's is hungry for exclusive merchandise. The department store chain sells Sag Harbor, Gloria Vanderbilt, Nike, Adidas, Nine & Co., Lee, Levi's, Jockey and proprietary labels Daisy Fuentes, apt. 9, Croft & Barrow and Sonoma.
Competitors such as Wal-Mart, Sears and Kmart have opened design offices in New York in recent years to build relationships in the apparel and manufacturing industries and source exclusive products. Even Goody's Family Clothing, a regional retailer based in Knoxville, Tenn., established a design office in Manhattan last year to provide direction and product development.
Kohl's said it would follow suit and planned to open a New York design office "to support exclusive brands such as Chaps, Candie's, Elle and Simply Vera" by Vera Wang, which is being launched in the fall. Industry sources have said that Simply Vera could develop into a $500 million business for Kohl's by the third year.
The company identified its "two most important initiatives for 2007" as partnership with Vera Wang, which extends to several product categories beyond sportswear, such as accessories, jewelry, footwear and intimate apparel, and with the Food Network for home goods.Brands available only at Kohl's now make up 7 percent of the company's offering. Kohl's said exclusive products would contribute to market share gains and it would work to get a bigger share of customers' wallets in 2007 by developing cross-shopping strategies.
Kohl's shares on Wednesday closed at $73.93, down 71 cents on the New York Stock Exchange.
@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)
Not only does #TheProfit return to CNBC tonight, but @marcuslemonis has launched @shopmarcus, a new shopping and lifestyle retail experience in Aspen and Chicago, with more locations to come. The retail stores offer in-store stylists and a variety of contemporary womenswear selections.
“It’s life, I’m going to face it,” @mingxi11 sighed. “I fell, but you know, I think the most important thing is that I get back up. I had the love, the help from my sister — the girl next to me Gizele [Oliveira] — she’s so nice. When I went backstage everybody was trying to comfort me like ‘Oh Ming, it’s OK.’ I’m really, really touched. I think it’s them who gave me the courage to go back on stage for the finale,” Xi told WWD of her fall at the @victoriassecret fashion show. (📷: David Fisher) #wwdfashion #vsfashionshow #victoriassecret
@louisvuitton tapped @therealpeterlindbergh for its latest city-centric photo book, which is part of a series called Fashion Eye. The primarily black and white book captures the spirit of Berlin in 57 images shot between 1989 and 2019. “Berlin is an inspiration for me, more than a city. I mean @millajovovich is simply Berlin!” said Lindbergh. #wwdfashion
“You know, I think audiences expect a certain performance so I have to deliver to them what they’re expecting to a certain degree. But I’m also a different actor and a different person, I have my own spin on the character,” says @noahegalvin of his takeover of the leading role in “Dear Evan Hansen” following the departure of @bensplatt, who originated the role. Read WWD’s interview with the 23-year-old actor on WWD.com #wwdeye (📷: @jilliansollazzo)
For pre-fall 2018, @etro created richly-colored wonderland, using tapestries, textiles and wallpapers from the Eastern world at large. The line featured floral and graphic prints and jacquard motifs, like this two-piece look featured here. #wwdfashion (📷: Giovanna Pavesi)
@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)