Kohl’s 2Q disappoints, but retailer optimistic
MENOMONEE FALLS, Wis. — Sales and earnings were disappointing at Kohl’s, but the retailer remains optimistic heading into the fall.
The retailer reported second quarter net income of $240 million, or $1 per diluted share, compared with $299 million, or $1.08 per diluted share, a year ago. Net sales were $4.2 billion, a decrease of 1% for the quarter. Comparable-store sales for the quarter decreased 2.7%.
Kevin Mansell, Kohl’s chairman, president and CEO, said, “Our sales performance in the second quarter was disappointing. Our gross margin performance for the quarter, however, was better than expected. Our teams remain disciplined in their expense management and, again, delivered solid results. We accomplished our goal of improving inventory levels for the fall season and our sales improved considerably in July as units were received. As we look forward to the fall season, we are excited about the fashion content and level of newness in our assortments.”
By the end of the quarter, Kohl’s operated 1,134 stores in 49 states, compared with 1,097 stores at the same time last year. During the first half of the year, the company opened 9 new stores, including 1 relocated store, closed 1 store and completed 40 remodels. The company expects to open an additional 12 stores and complete an additional 10 remodels in September.
Kohl’s expects earnings for the third quarter to range from 83 cents to 89 cents per diluted share, based on expected sales growth of 1% to 3% and comparable-store sales growth of flat to 2%. After incorporating its second quarter results and third quarter outlook, the company now expects to earn $4.50 to $4.65 per diluted share for fiscal 2012 versus its previous guidance of $4.75 per diluted share.
TAGSYS RFID expands U.S. leadership
KING OF PRUSSIA, Pa. — TAGSYS RFID, a provider of item-level inventory management systems that streamline the supply chain, has expanded its U.S.-based organization in response to accelerating demand for smart inventory and loss management systems within the retail and luxury sectors.
Tony Dublino has been named director of U.S. Sales for retail and apparel and Chad Tripp is the new director of field applications engineering for TAGSYS in the United States.
Dublino brings more than twenty years experience in selling and supporting item-level inventory tracking solutions throughout the supply chain, including retail and associated channels, with a specific expertise in RFID deployment.
Tripp is a strong technical addition to the team with over 17 years experience in defining, developing and implementing high value software solutions in a range of industries, including retail, banking, and human resource management.
“The US retail and apparel market is an important focus for TAGSYS since major retailers are rapidly moving to full RFID compliance by all of their vendors. Tony and Chad bring a wealth of experience in developing and supporting solutions in this space,” said Monte Lucas, VP sales, Americas, for TAGSYS. “They are valuable resources for companies looking to understand and leverage the business intelligence benefits of RFID, initiate deployments that cut costs and improve overall supply chain efficiency.”
Both Dublino and Tripp will be responsible for supporting TAGSYS’ FiTS* deployments for the retail market and its supply chain ecosystem.
Newgistics buys fufillment provider
AUSTIN, Texas — Newgistics, a provider of small parcel delivery, returns management and freight shipping services, has acquired AtLast Fulfillment, a Colorado-based provider of fulfillment and warehousing solutions.
“AtLast Fulfillment and Newgistics share a focus on innovating technology-driven solutions to achieve one main goal: helping our customers provide a positive shopping experience for their customers,” said Bill Razzouk, chairman and CEO of Newgistics. “We are confident the acquisition of AtLast will increase the breadth and quality of services offered to e-tailers and direct-to-consumer merchants and brands,” Razzouk added.
“We wanted to align ourselves with a partner that shared our vision on delivering remarkable customer experiences, as well as do what’s in the best interest of our employees and customers. Newgistics is a perfect fit for AtLast. Our companies share a great deal in common, including our core values, and we are excited to be part of the Newgistics family," said Ted Tanner, CEO and founder of AtLast Fulfillment.
Tanner will join the Newgistics executive team as VP of e-commerce business development.