Customers leave the Kohl’s store in Westminster, Colorado August 14, 2008.
Kohl’s on Tuesday reported a quarterly profit and same-store sales that topped analysts’ estimates, as the department store chain sold more apparel at full price, helping boost margins.
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Shares of the company, however, fell 3 percent to $76.30 before the bell on Tuesday. They have risen more than 45 percent this year.
Much like other U.S. department store chains, Kohl’s has been sprucing up its outlets and bolstering its online business to cater to a wider set of customers.
The company has been cutting back on discounts as it looks to shore up margins. Kohl’s gross margin rose 42 basis points to 39.5 percent in the second quarter ended Aug. 4.
“We saw strength across the business – both our store and digital channels, all regions of the country, and our proprietary and national brands,” Chief Executive Officer Michelle Gass.
Net income rose to $292 million, or $1.76 per share, in the reported quarter from $208 million, or $1.24 per share, a year earlier.
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Excluding one-time items, Kohl’s earned $1.76 per share, well above the average analyst estimate of $1.64, according to Thomson Reuters I/B/E/S. The company also raised its full-year adjusted profit forecast.
Sales at stores open for at least a year increased 3.1 percent, compared with a rise of 2.69 percent estimated by analysts.
Net sales rose for the fourth straight quarter to $4.57 billion, above expectations of $4.26 billion.
(Reporting by Aishwarya Venugopal in Bengaluru; Editing by Anil D’Silva)
