) posted fiscal 2013-first quarter earnings of 66 cents, beating
the Zacks Consensus Estimate of 58 cents per share by 13.8%.
Earnings were ahead of management's expectation of 55 cents-63
cents per share and climbed 5.0% from the prior-year quarter
earnings of 63 cents per share.
Although Kohl's suffered soft sales in the earlier months,
conditions improved in April due to warm weather. Sales were
below management's expectation, but bottom line rose on the back
of gross margin improvement and tight expense control.
Sales and Margins
Net sales slipped 1.0% from the year-ago level to $4.20
billion, missing the Zacks Consensus Estimate of $4.26 billion.
Kohl's' comparable store sales declined 1.9% from the prior-year
quarter compared to a rise of 0.2% in the year-ago period. Low
inventory turnover along with improper pricing and ineffective
marketing strategies resulted in soft sales during the
Gross margin, expanded 50 basis points to 36.4% due to lower
cost of merchandise. Operating margin was 7.5%, slightly down
from 7.6% in the year ago quarter. Lower selling, general and
administrative expenses were offset by higher depreciation
Kohl's ended the quarter with 1,155 stores in 49 states,
compared with 1,134 stores in the year-ago period. The company
opened nine new stores during the first quarter of 2013. It has
plans to open three new stores and remodel 30 more in the
Other Financial Details
As of May 4, 2013, Kohl's held $518 million of current assets
compared to $537 million in the previous quarter. Long term debt
remained at $2.5 billion during the period.
Kohl's issued guidance for the second quarter of 2013. The
company expects earnings in the range of $1.00 to $1.08 per
share, sales to increase in the range of 1%-3% and comparable
store sales to increase in the range of 0%-2% in the quarter.
Kohl's expects to repurchase shares worth $250.0 million in the
Kohl's now has a Zacks Rank #3 (Hold). Other retail and
wholesale stocks that warrant a look include
Harris Teeter Supermarkets Inc
Costco Wholesale Corporation
). All of them carry a Zacks Rank #2 (Buy)
COSTCO WHOLE CP (COST): Free Stock Analysis
DILLARDS INC-A (DDS): Free Stock Analysis
HARRIS TEETER (HTSI): Free Stock Analysis
KOHLS CORP (KSS): Free Stock Analysis Report
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