Kohl's Corp.’s (Menomonee Falls, Wis.) net profits rose 16.5 percent to $303 million, or $1.09 per share, for the second quarter ended July 30, from $260 million or 84 cents per share in the prior year's quarter.
Comparable store sales for the quarter increased 1.9 percent.
“I’m extremely pleased with our ability to deliver strong earnings growth in a challenging sales environment,” says Kevin Mansell, Kohl's chairman, president and ceo.
Sales for the quarter were up 3.6 percent to $4.2 billion, from $4.1 billion in the 2010 period, and comps rose 1.9 percent, below the company's estimate. Mansell cited the absence of a large apparel brand launch and the elimination of the Access brand, which was purchased from Liz Claiborne, as reasons for a “sub-par sales performance.” “It's been a drag on the first half of the year,” he says.
Kohl's expects to launch its exclusive Jennifer Lopez and Marc Anthony brands in the third quarter. Mansell says the new brands will help Kohl's achieve a 4 percent to 6 percent sales increase in the third quarter.
Kohl's ended the quarter with 1097 stores in 49 states, compared with 1067 stores at the same time last year. During the first half of the year, Kohl's opened nine stores and completed the remodel of 85 stores. The company expects to open an additional 31 stores and remodel 15 stores next month.