Kohl's to see pent-up demand for seasonal businesses
13 May '11
2 min read
Kohl's Corporation reported results for the quarter ended April 30, 2011.
First Quarter Results
Kohl's Corporation reported first quarter diluted earnings per share increased 14 percent to $0.73. Net income for the quarter was $211 million, compared with $199 million ($0.64 per diluted share) a year ago. Net sales were $4.2 billion, an increase of 3.1 percent for the quarter. Comparable store sales for the quarter increased 1.3 percent.
Kevin Mansell, Kohl's chairman, president and chief executive officer, said, "We are pleased that we were able to achieve double-digit growth in earnings per share through strong expense management and continued gross margin improvement. We also distributed our first-ever dividend of $0.25 per share and repurchased $445 million of our shares within the quarter as we remain committed to delivering excess cash to our shareholders."
Mansell added, "Our E-Commerce business remains on track to achieve $1 billion in sales in 2011. To achieve that goal, we will continue to invest in the business as we purchased a 3rd E-Commerce fulfillment center in Maryland that will be on-line to support Holiday 2011 peak season. We have strengthened our marketing for the second quarter and believe that we will see pent-up demand for seasonal businesses which would allow us to achieve a better comp and even stronger financial results in the second quarter."
Quarterly Dividend Declared
On May 11, 2011, Kohl's Board of Directors declared a quarterly dividend on the Company's common stock of $0.25 per share. The dividend is payable June 29, 2011 to shareholders of record at the close of business on June 8, 2011.
Store Update
The Company ended the quarter with 1,097 stores in 49 states, compared with 1,067 stores at the same time last year. During the quarter, Kohl's successfully opened nine stores and completed the remodel of 30 stores. The Company expects to open an additional 31 stores and remodel an additional 70 stores later this year.
Earnings Guidance - Second Quarter and Fiscal 2011
The Company provided initial guidance for the fiscal quarter ending July 30, 2011 of $0.96 to $1.02 per diluted share. The Company also updated its guidance for fiscal 2011 to $4.25 to $4.40 per diluted share, reflecting its first quarter results and expected second quarter share repurchases, from its initial guidance of $4.05 to $4.25 per diluted share.
marketing@alchempro.com
