- Prachi Singh |
Kohl’s Corporation has reported 4 percent rise in its second quarter revenue to 4,570 million dollars, while revenues in the fist six months increased 3.8 percent to 8,778 million dollars. Comparable sales in the second quarter rose 3.1 percent and increased 1.8 percent during the six-month period.
Commenting on the results, Michelle Gass, Kohl's chief executive officer, said in a statement: “We are pleased to report that our sales momentum continued in the second quarter, resulting in a comparable sales increase of 3.1 percent, our fourth consecutive quarter of positive comparable sales. We also reported higher gross margin as a result of our ongoing focus on inventory management.”
Review of Kohl's Q2 and H1 performance
Second quarter gross margin improved to 39.5 percent compared to 39.1 percent in the previous year’s second quarter, while in the six months, gross margin rose to 38.3 percent against 37.8 percent last year. Second and first half reported net income increased 40 percent and 34 percent respectively to 292 million dollars and 368 million dollars. Diluted earnings per share were up 42 percent to 1.76 dollars in the second quarter and up 36 percent to 2.21 dollars in the first half period. Excluding loss of extinguishment of debt, second quarter net income rose 40 percent to 292 million dollars and diluted earnings per share rose 42 percent to 1.76 dollars. For the first half, net income rose 46 percent to 399 million dollars and diluted earnings per share rose 48 percent to 2.40 dollars.
On August 14, 2018, Kohl's board of directors declared a quarterly cash dividend on the company's common stock of 0.61 dollar per share payable September 26, 2018 to shareholders of record at the close of business on September 12, 2018.
The company now expects its fiscal 2018 diluted earnings per share to be 4.96 dollars to 5.36 dollars, compared to its prior guidance of 4.86 dollars to 5.31 dollars. Excluding the loss on extinguishment of debt, the company said, fiscal 2018 diluted earnings per share is expected to be 5.15 dollars to 5.55 dollars, compared to prior guidance of 5.05 dollars to 5.50 dollars.