The specialty retailer,
), is geared to boost its sales by revamping its customer
service. Kohl has set up a new facility dedicated to customer
service at Waterview Parkway, which is expected to be operational
by late spring of 2014. Moreover, Kohl's is expanding its
footprint into the booming business areas of Dallas and
The customer service center spans across three stories of two
buildings and will have approximately 300 employees who will
attend the customers registered under the Kohl Charge program as
well as those visiting Kohl's' website Kohl.com. The new
facility adds to the customer service centers already located in
San Antonio, TX and Menomonee Falls, WI.
We are encouraged by Kohl's initiative to gear its customer
service. It will boost the company's sales and revenues in the
In May 2013, Kohl's 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's 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.
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
Kohl's 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 second
quarter of 2013. Kohl's expects to repurchase shares worth $250.0
million in the same period.
Kohl's now has a Zacks Rank #3 (Hold). Other retail and
wholesale stocks that warrant a look include
Harris Teeter Supermarkets Inc.
). All of them carry a Zacks Rank #2 (Buy).
HARRIS TEETER (HTSI): Free Stock Analysis
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KOHLS CORP (KSS): Free Stock Analysis Report
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