In a report that could bring change in pricing and other merchandising policies, Kohl’s Corp. said today that its 2011 net income increased only 4%, to $1.17 billion, due largely to a disappointing 8% decline in net income in the fourth quarter compared to the same period in 2010.
For the year, the Menomonee Falls based retailer reported that diluted earnings per share increased 17% to $4.30, while net sales were $18.8 billion, an increase of 2.2%. Meanwhile, comparable store sales increased 0.5%.
Although net income for the quarter decreased to $455 million, compared to $494 million or $1.66 per diluted share, a year ago, fourth quarter diluted earnings per share increased 9% to $1.81.
Q4 net sales were $6 billion, a decrease of 0.3% from the prior year quarter, and comparable store sales for the quarter decreased 2.1% in what was expected to be a solid holiday season.
Kevin Mansell, Kohl’s chairman, president and chief executive officer, said the company was able to navigate “a difficult holiday sales season” through expense and inventory management, but acknowledged that changes are necessary to boost performance. One piece of encouraging news for Kohl’s is that it reached a milestone in 2011 as its e-commerce business reached $1 billion in revenue.
Based on assumptions of a total sales increase of 4.5% and a comparable store sales increase of 2%, Kohl’s expects earnings per diluted share of $4.75 in 2012. It also anticipates earnings per diluted share of 60 cents in the first fiscal quarter, which is based on assumptions of a total sales increase of 3% and a 1% increase in comparable store sales.
Kohl’s opened 40 stores during 2011, raising its total number of stores to 1,127 stores in 49 states, compared with 1,089 stores at the same time last year. The company also remodeled 100 stores in 2011.
