Kohl’s Posts 13.5 Percent Gain in Second-Quarter Profit



MENOMONEE FALLS, Wis.—Second-quarter net income for Kohl’s shot up 13.5 percent to $260 million.

Net sales for the department-store retailer rose 7.7 percent to $4.1 billion, which included a 4.6 percent increase in same-store sales. Kevin Mansell, chairman, president and chief executive officer, said the pickup in both total sales and comparable-store sales continued Kohl’s gains in market share. Kohl’s sales increases and inventory management helped the company to a 30 basis-point rise in gross margin to 40.3 percent, Mansell said.

Kohl’s also kept a steady hand on its expenses. While selling, general and administrative expenses rose 7.7 percent on a dollar basis, they remained relatively flat as a percentage of sales at 25.5 percent.

The company said it expects total sales in both the third and fourth quarters to increase by between 4.5 percent and 6.5 percent, including a same-store sales gain of 2 to 4 percent for both periods.

Posted in News, Retail.

Last updated: August 12, 2010