Kohl's April Comparable Sales Slip - Analyst Blog

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Department store Kohl's Corporation ( KSS ) posted negative same-store sales results for the month of April compared with the prior year period. The total sales for the period also decreased, due to early arrival of Easter and warm weather in the month of March.

Amid a challenging sales environment, Kohl's comparable store sales dipped 3.5% for the four-weeks ended April 28, 2012, after an increase of 10.2% in the four-week month ended April 30, 2011. Kohl's total sales dipped 1.9% in the month of April 2012 to $1.25 billion, as compared to 12.1% growth with  sales of $1.28 billion in the year-ago month.

However, same-store sales for the quarter ending April 28 increased 0.2%, while total sales climbed 1.9%, driven by accessories and home divisions along with positive response in men's items.

Kohl's, which is slated to release its first quarter 2012 earnings on May 10, expects comparable store sales to increase 1% and sales to increase 3% in the quarter. Kohl's also expects total sales to go up by 4.5%, and comparable store sales forecast to increase by 2% for the fiscal 2012, driven by new product launches of Rock & Republic brand (launched in February 2012) and other brands of Jennifer Lopez and Marc Anthony launched in the third-quarter of 2011.

On the other hand, same-store sales at Kohl's competitor, Ross Stores Inc. ( ROST ) reported growth in same-store sales for the four weeks ended April 28, 2012 of 7%. However, the positive store sales did not exceed the stronger same-store sales growth of 10% in the month of April 2011. Net sales for the month marked an increase of 11% to $725 million from $651 million reported in the prior year period.

Kohl's, which operates 1,134 stores in 49 states, holds a Zacks #3 Rank (short-term 'Hold' rating). Currently, we maintain a long-term Neutral recommendation on the stock.


 
KOHLS CORP (KSS): Free Stock Analysis Report
 
ROSS STORES (ROST): Free Stock Analysis Report
 
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: KSS , ROST

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