Net Income Flat for Kohl's in Third Quarter
November 11, 2010,
MENOMONEE FALLS, Wis.-Kohl's registered net income of $194 million for the third quarter ending Oct. 30, one-half of 1 percent above the retailer's net for last year's third quarter.
The company's flat bottom-line performance occurred largely because of an 8.4 percent bump up in selling, general and administrative expenses--which also finished the quarter at 26.4 percent of net sales, 100 basis points ahead of last year. Net sales rose 4.1 percent in the quarter to $4.2 billion, including a same-store sales increase of 1.8 percent. Gross margin gained 50 basis points to 38.5 percent.
Kohl's said fourth-quarter sales will likely rise by from 4.5 to 6.5 percent, with same-store sales edging up 2 to 4 percent. The last quarter's gross margin is expected to increase by 20 to 40 basis points, and SG&A should rise by 3 to 4 percent.