MENOMONEE FALLS, Wis.-With sales lagging for both the fourth quarter and the fiscal year, Kohl’s turned in an 11.6 percent fall in net income for its fourth quarter, to $334 million, and a decline of 9.8 percent in fiscal-year net income, to $889 million.
Net sales in the quarter slipped 2.6 percent to $6.1 billion, including a 2 percent decline in same-store sales. For the year ending on Feb. 1, net sales totaled $19 billion, down 8.7 percent and including a 1.2 percent fall in same-store sales. Regarding the quarter, Kevin Mansell, Kohl’s chairman, president and CEO, said, “We were pleased with our sales during the November and December holiday season, as the customer responded favorably to our merchandise and values.”
Fourth-quarter gross margin gained 72 basis points to finish at 34 percent. Mansell said, “Despite increased shipping costs related to our e-commerce business, we were able to achieve our gross-margin guidance for the quarter.” Selling, general and administrative expenses were up 2.5 percent in dollars and 125 basis points as a percentage of sales, to 20.4 percent.
Kohl’s said that for 2014, it expects an increase of 0.5 percent to 2.5 percent in total sales. Same-store sales are expected to range from flat to a gain of 2 percent.