Menomonee Falls, WI—Kohl’s Thursday said its second quarter profit rose marginally from last year, helped by lower expenses and taxes, even as sales dropped. Earnings per share topped Wall Street estimates, while sales fell short of expectations.
Further, the company said it saw improvement in sales as the quarter progressed. The stock advanced over 3 percent in pre-market activity.
Net income edged up to $232 million from $231 million in the prior year. Earnings per share advanced to $1.13 from $1.04.
That exceeded analysts’ average estimate for $1.07 a share.
Net sales were down 1.1% to $4.24 billion, compared with $4.289 billion last year. Analysts expected revenues of $4.28 billion.
Comparable store sales fell 1.3%, in comparison with a growth of 0.9% last year. While gross margin narrowed slightly to 39% from 39.1%.
Selling, general, and administrative expenses fell to $981 million from $1 billion, and Depreciation and amortization slipped to $222 million from $225 million. Additionally, provision for income taxes was slightly down at $134 million.
Kevin Mansell, Kohl’s chairman/president/ceo, said, “We are pleased with the improvement we saw in sales as the quarter progressed. The improvement was the most dramatic in the month of July where we achieved a positive comp. As they consistently do, our teams did a great job of managing expenses throughout the quarter. We enter the back-to-school season with fresh, new inventory and encouraging momentum.”
Kohl’s ended the quarter with 1,160 stores/ The company expects to open four new stores this Fall, including one store which was temporarily closed in the first quarter for a complete re-build.