Department stores chain, Kohl’s Corporation (NYSE: KSS) reported marginally better-than-expected fiscal third quarter profits on Thursday thanks to 2.6% jump in overall sales and indicated that same-store-sales will grow in the current quarter in the wake of holiday season.
Nevertheless, shares edged lower in premarket trading as the company forecasted earnings of $2.00 to $2.08 a share in the holiday season quarter, falling short of analysts’ consensus estimate was of $2.16 a share. The guidance is based on the assumption that sales during the fiscal fourth quarter will grow 7 % to 8%.
For the third quarter, the company reported net profit of $215 million, or 91 cents a share, compared to $211 million, or 80 cents a share, in the corresponding period of last year. Sales for the period came at $ 4.49 billion, up from year earlier quarter’s $4.38 billion. Analysts polled by Thomson Reuters had most recently forecasted net earnings of 88 cents on revenue of $4.47 billion.
Commenting over the quarterly results, Kohl’s Chief Executive, President and Chairman, Kevin Mansell said to analysts in a statement, “Our sales performance in the third quarter was consistent with our expectations, while our gross margin results were better than expected. Thanks to our dedicated teams, expenses were again well-managed.”
Kohl’s, which operates 1, 146 stores, expects that same-store-sales to jump by 3 % to 4% during the holiday season quarter. In the fiscal third quarter, Kohl’s reported 1.1 % growth.
Same-store-sales is a key gauge on retail industry performance since it does not include the sales impact from those stores that were opened less than a year ago or stores that were closed during last one year.
Meanwhile, Mansell said that Company was geared up for the holiday season and it has invested soundly on inventories. “Our stores are festive and fun to shop. We are also very excited about our expanded gift strategy and our ability to offer great products at great values,” added Mansell.
For the fiscal 2012, the company expects earnings to fall within the range of $ 4.52 to $ 4.60 a share compared to its earlier forecast of $ 4.50 to $ 4.65 a share. Analysts polled by Thomson Reuters are expecting earnings at $ 4.62 a share.
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