Sales at Kohl's Rise Amid Robust Consumer Spending --Update
August 21 2018 - 9:18AM
Dow Jones News
By Micah Maidenberg and Allison Prang
Kohl's Corp. posted improved sales results during the second
quarter amid a wave of robust consumer spending that has buoyed
many retailers.
The company said its second-quarter profit rose 40% to $292
million, or $1.76 a share, from $208 million, or $1.24 a share, a
year earlier. Analysts surveyed by FactSet were expecting the
company to report earnings $1.64 a share on an adjusted basis.
Net sales rose 3.9% to $4.31 billion, more than the $4.27
billion expected by analysts.
The company said adjusted comparable sales, which account for an
extra week in last year's retail calendar, rose 3.1% during the
quarter, or 4.3% on a fiscal basis. A year ago, same-store sales
fell 0.4%. Analysts were predicting a 2.6% increase in same-store
sales for the second quarter.
Kohl's Chief Executive Michelle Gass said in prepared remarks
that the company's "men's and women's apparel businesses led the
company, followed closely by footwear."
Americans are spending more on everything from jeans to handbags
to home furnishings as rising wages and lower unemployment boost
disposable income.
The spending spree is helping retailers recover after several
difficult years. Last week, Walmart Inc. said its quarterly sales
rose at the fastest pace in more than a decade. And other
retailers, including Nordstrom Inc. and Home Depot Inc., also
reported strong results.
The company also raised its guidance for the rest of the year.
For 2018, Kohl's is forecasting earnings of between $4.96 a share
and $5.36 a share. It increased its expectations for its earnings
excluding the loss on extinguishment of debt and now expects those
to be between $5.15 and $5.55 a share for the year.
Share of Kohl's fell 2.8% in premarket trading Tuesday. The
stock is up more than 45% so far this year.
Write to Micah Maidenberg at micah.maidenberg@wsj.com and
Allison Prang at allison.prang@wsj.com
(END) Dow Jones Newswires
August 21, 2018 09:03 ET (13:03 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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