Kohl's Drives Bottom Line to 16.5 Percent Increase
August 11, 2011,
MENOMONEE FALLS, Wis.-Controls over expenses and inventories helped fuel Kohl's to a healthy 16.5 percent increase in net income for its fiscal second quarter, to $303 million.
According to Kevin Mansell, chairman, president and CEO, "prudent expense management" kept selling, general and administrative expenses in check in the quarter, which ended on July 30. SG&A dollars rose a meager 0.6 percent, and SG&A as a percentage of sales fell 75 basis points to 24.8 percent. Gross margin improved by 41 basis points to 40.3 percent--thanks, according to Mansell, to "disciplined inventory management" and the increased penetration of private and exclusive brands.