Kohl’s Q4 profit disappoints

Menomonee Falls, Wis. – Kohl’s Corp.’s reported disappointing fourth-quarter results amid markdowns during the holiday period and increased shipping costs for its e-commerce business.

The chain posted a profit of $334 million for the quarter ended Feb. 1, down from $378 million a year earlier. Total sales dropped 3.8% to about $6.1 billion from $6.34 billion. Same-store sales were down 2%. Kohl’s cited the impact of the 53rd week in fiscal 2012 as a driver of its declines.

According to Kohl’s, the extra week accounted for an additional $169 million in total sales and $15 million in net earnings that were not obtained in the 52-week fiscal 2013.

“We were pleased with our sales during the November and December holiday season as the customer responded favorably to our merchandise and values,” said Kevin Mansell, chairman, president and CEO of Kohl’s. “Despite increased shipping costs related to our e-commerce business, we were able to achieve our gross margin guidance for the quarter. We believe our inventory levels and assortment are well-positioned as we transition into the spring season."  

For the full year, net income declined 10% to $889 million from $986 million a year-ago. Total sales dropped 1.3% to $19 billion from $19.2 billion during the year. Same-store sales fell 1.2%.

For fiscal 2014, Kohl’s expects total sales increases of 0.5 to 2.5% ad same-store sales increases of 0 to 2%.

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