Shares of Kohls (KSS) ticked higher Thursday after the moderately priced department store operator said a 16% jump in second-quarter profit trumped Wall Street as margins improved on higher sales and tighter expenses.
Continue Reading Below
Reflecting the strong growth, the retail chain operator raised its annual earnings view to a range of $4.45 to $4.60 a share from its earlier forecast between $4.25 and $4.40. Wall Street is looking for a slightly weaker profit of $4.40.
The Menomonee Falls, Wis.-based posted net income for the quarter of $303 million, or $1.10 a share, compared with $260 million, or 84 cents a share, in the same quarter last year. Analysts polled by Thomson Reuters were expecting a profit of just $1.08 a share.
Revenue for the three months ended July 30 was $4.25 billion, up 3.6% from $4.1 billion a year ago, just missing the Streets view of $4.28 billion. Fueling the gains was a 1.9% gain in stores open at least a year.
I am extremely pleased with our ability to deliver strong earnings growth in a challenging sales environment, Kohls CEO Kevin Mansell said in a statement. Prudent expense management across many of our areas, especially in stores, allowed us to achieve lower-than-planned expense growth.
The company attributed the results to stronger margins with the introduction of private and exclusive brands and disciplined inventory management.