Kohl’s Q2 sales decline 2 percent

Kohl’s sales of 4,182 million dollars for the three months ended July 30, 2016 were down 2 percent against 4,267 million dollars in the same quarter last year. Sales in the six months declined 2.8 percent to 8,154 million dollars from 8,390 million dollars in the last year’s first half. Comparable store sales declined 1.8 percent and 2.8 percent respectively for the second quarter and first half.

Commenting on the development, Kevin Mansell, Kohl's Chairman, CEO and President, said, "Our sales improved over our first quarter results, but were below our expectations. We are encouraged by the performance of juniors and young men’s as we enter the Back-to-School season. "

Q2 earnings up but H1 witnesses sharp decline

Net income, however increased 8 percent to 140 million dollars in the second quarter but declined 39 percent to 157 million dollars in the first half. Net income excluding non-recurring items was up 5 percent to 221 million dollars in the second quarter but was down 18 percent to 279 million dollars in the first half. Second quarter reported earnings per diluted share stood at 0.77 dollars, up 17 percent but first half earnings declined 33 percent to 0.86 dollar. Excluding non-recurring items, earnings per diluted share increased 14 percent to 1.22 dollars in the second quarter but declined 10 percent to 1.53 dollars in the first half.

On August 9, 2016, the Kohl's Board of Directors declared a quarterly cash dividend on the company's common stock of 0.50 dollar per share. Kohl’s ended the quarter with 1,150 Kohl's stores, 12 FILA Outlet stores, and three Off/Aisle clearance centres in 49 states, compared with 1,164 Kohl's stores at the same time last year.

The company now expects its fiscal 2016 diluted earnings per share to be 3.12 dollars to 3.32 dollars per diluted share. Excluding impairments, store closing and other costs, fiscal 2016 diluted earnings per share is expected to be 3.80 dollars to 4 dollars, compared to the company’s prior guidance of 4.05 dollars to 4.25 dollars.

Picture:Kohl's