) posted second quarter fiscal 2013 earnings of $1.04 per share,
beating the Zacks Consensus Estimate by a penny. Earnings were
within management's expectation of $1.00 - $1.08 per share and
climbed 4.0% from the prior-year quarter earnings of $1.00 per
share. The upswing in earnings was due to top-line growth, gross
margin improvement and tight expense control.
Sales and Margins
Net sales increased 2.0% from the year-ago level to $4.289
billion, on the back of improved comparable sales. Sales however
missed the Zacks Consensus Estimate of $4.295 billion. Kohl's
comparable store sales were 0.9% in the reported quarter compared
to a decline of 2.7% in the year-ago period. The company was able
to manage its inventory and also contributed in e-commerce growth
during the quarter.
Gross margin improved 10 basis points to 39.1%. Operating
margin declined 40 basis points to 10.5% from the year-ago
quarter due to higher operating expenses. Both selling, general
and administrative expenses and depreciation expenses were higher
in the quarter.
The company did not open any store in the quarter. Last
quarter, it had opened nine stores, ending the quarter with 1,155
stores in 49 states. Kohl's has plans to open three new stores
and remodel 30 more in the fall.
Other Financial Details
As of Aug 3, 2013, Kohl's cash and cash equivalents were $592
million compared with $518 million in the previous quarter.
Long-term debt remained at $2.492 billion during the period
compared with $2.492 billion.
During the quarter, the board of Kohl's declared a quarterly
cash dividend of 35 cents per share, which will be paid on Sep
25, 2013 to shareholders of record as of Sep 11, 2013.
Kohl's has issued guidance for the third quarter of fiscal
2013. The company expects earnings in the range of 83 cents to 92
cents 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
For fiscal 2013, Kohl's has broadened its earnings guidance
from $4.15 - $4.45 per share to $4.15 - $4.35 per share.
Kohl's now has a Zacks Rank #3 (Hold). Other retail and
wholesale stocks that warrant a look include
Ross Stores Inc
). While hhgregg holds a Zacks Rank #1 (Strong Buy), Ross Stores
and Delhaize carry a Zacks Rank #2 (Buy).
DELHAIZE-LE (DEG): Free Stock Analysis Report
HHGREGG INC (HGG): Free Stock Analysis Report
KOHLS CORP (KSS): Free Stock Analysis Report
ROSS STORES (ROST): Free Stock Analysis
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