Menomonee Falls, WI—Keeping a close eye on expenses and confident of the success in its exclusive Jennifer Lopez and Marc Anthony collections, Kohl’s raised its full year forecast today as it reported its third quarter profit rose 20%.
Shares in the department store retail rose in early trading after the company predicted a 2% to 4% increase in its comparable store sales for its current quarter which includes holiday, and a 4% to 6% increase in total sales.
For the quarter ended Oct. 29, Kohl’s net income rose to $211 million, or 80 cents a share, up from $176 million or 57 cents a share a year ago.
Net revenue rose 3.8% to $4.38 billion from $4.22 billion last year. Comparable store sales increased 2.1%.
Kohl’s earnings were ahead of analysts’ average estimate for 79 cents a share and in line with their forecast for total sales.
JLo, Marc Anthony Brands ‘Met Aggressive Sales Plans’
Mentioning that the results were achieved in a “challenging sales environment, Kevin Mansell, Kohl’s chairman, president/ceo, added that “our gross margin rate increased over last year as a result of our increased penetration of private and exclusive brands and disciplined inventory management. We are pleased with the expense management discipline across the company that allowed us to grow our expenses less than we originally planned.”
Any fears that the divorce between Lopez and Anthony, which was announced in July, might hinder sales of their Kohl’s collections is apparently unfounded.
“The launch of our Jennifer Lopez and Marc Anthony brands during the quarter met our aggressive sales plans,” Mansell said. “We expect our collection of powerful brands supported by significant marketing investments, especially in broadcast and digital media, to deliver a strong holiday season.”
As far as its fourth quarter goes, Kohl’s now expects net income of $1.93 to $2.04 a share on revenue of $6.28 billion to $6.4 billion. Analysts’ average estimate expects earnings of $1.96 a share on revenue of $6.3 billion.
Kohl’s said net sales for the first nine months of its fiscal year were $12.8 billion, an increase of 3.5% and year-to-date comparable store sales increased 1.7%.
The positive results came on the heels of some other good news this week. For the third year in a row, Kohl’s was named “the nation’s favorite fashion retail chain,” according to an annual consumer survey conducted by Market Force Information, a worldwide leader in customer intelligence solutions.