Kohl’s Q3 profit flat, revenue rises
Menomonee Falls, Wis. — Kohl’s Corp. reported late Wednesday it earned $194 million in the quarter ended Oct. 30, compared with nearly identical net income of $193 million in the year-ago period. The retailer cited rising costs for the flat profit performance.
Revenue rose 4.2% to $4.22 billion, just missing Wall Street expectations of $4.3 billion.
Same-store sales edged up 1.8%.
“We continue to gain market share as reflected in our performance in both comparable and total sales growth,” said Kevin Mansell, Kohl’s chairman, president and CEO.
Earlier this month, Kohl’s said its third-quarter results would come in at the low end of its guidance due to errors in its accounting for leased properties.
Borders looks to improve user experience with ShopRunner
ANN ARBOR, Mich. Borders announced that it has participating in ShopRunner’s new online shopping program designed to offer customers unlimited free two-day shipping with no minimum order size, and free shipping on returns, across a wide variety of retailers.
ShopRunner is a members-only program that offers exclusive deals from a number of retail partners, Borders reported. By logging onto shoprunner.com, members gain access to exclusive offers and are eligible for fast, free shipping and returns on millions of items. In addition, consumers can track the shipping status of any order and review order history to ensure a timely delivery.
“We’re committed to providing our customers with the best overall experience, with the added bonus of a heavy focus on consumer choice,” said Mike Edwards, CEO of Borders, Inc. “We recognize that today’s consumer wants to find the best deal fast. ShopRunner’s new online shopping program provides the most convenient online shopping experience and we’re thrilled to participate, providing Borders’ customers with even more value and a great service.”
Kohl’s reports 3Q earnings growth
MENOMONEE FALLS, Wis. Kohl’s reported net income for the quarter ended Oct. 30 of $194 million, or 63 cents per diluted share, compared with $193 million, or 63 cents per diluted share, a year ago.
Net sales for the quarter were $4.2 billion, an increase of 4.1% for the quarter. Comparable-store sales for the quarter increased 1.8%.
Kevin Mansell, Kohl’s chairman, president and CEO, said “We are pleased with our financial results for the third quarter. We continue to gain market share as reflected in our performance in both comparable and total sales growth. This sales performance, along with strong inventory management, allowed us to continue to increase our gross margin rate. We are pleased with the expense management discipline across the company that allowed us to grow our expenses less than we originally planned.“
For the fourth quarter, the company said it expects total sales to increase between 4.5% and 6.5%; comparable-store sales to increase 2% to 4%; and gross margin as a percent of sales to increase 20 to 40 basis points over last year. The company said it also expects selling, general and administrative expenses to increase between 3% and 4%. This would result in earnings per diluted share of $1.51 to $1.59 for the fourth quarter.