Kohl's Q1 Net Falls 15 Percent; Sets "Greatness Agenda"
May 15, 2014,
MENOMONEE FALLS, Wis.-In a quarter in which the company failed to achieve its sales goals, Kohl's posted first-quarter net income of $125 million, down 15 percent from a year ago.
Net sales fell 3.1 percent to $4.1 billion, including a decrease in same-store sales of 3.4 percent in the quarter, which ended on May 3. During a conference call this morning to financial analysts, Kevin Mansell, Kohl's chairman, president and CEO, said sales were below the retailer's expectations, and added that home in particular underperformed the company's total. Mansell added that soft home was one segment of strength in the quarter.
Gross margin gained 37 basis points in the quarter, to 36.8 percent. Selling, general and administrative expenses edged up 0.3 percent in dollars and 183 basis points as a percentage of sales, to 24.6 percent.
o"Amazing product": a renewed focus on providing the right merchandise mix
o"Incredible savings": efforts to help customers get more from every dollar they spend at Kohl's
o"Easy experience": investments making the shopping experience more seamless for Kohl's customers, including mobile and in-store technology
o"Personalized connections": efforts in building lasting relationships with Kohl's customers through localized merchandise and involvement in the communities where its stores are located
o"Winning teams": a new commitment to hiring and training engaged and results-oriented associates in stores
Mansell described this as Kohl's "longer-term" strategy. "We need to accelerate the results from the 'Greatness Agenda' quickly, especially on the sales line," he said.
Other Articles By Author
Patti Carpenter Talks Color and its Importance in the Home
HFN's DIGITAL EDITION
2017 State of the Industry Report
Cautious Optimism, Mixed Results
Many expected 2016 would be a banner year, but the political and economic climate softened consumer confidence. It was also a year consumers spent more lavishly on home remodeling rather than decorating.
ALSO IN THIS ISSUE:
- TJX Unveils First U.S. Homesense Store - In a time when retailers are reducing store counts, TJX continues to get physical.
- Ikea’s Fluid Spaces - The retailer’s new intros reflect multifunctional rooms.
- N.Y. Home Fashions Market Preview - Textile textures get soft and cozy, colors warmer.