Kohl’s Corp. reported first quarter net income of $154 million, or 63 cents per diluted share, compared to $201 million, or 69 cents per diluted share, in the same quarter of 2011.
Net sales were $4.2 billion, an increase of 1.9% for the quarter. Comparable store sales for the quarter increased 0.2%.
Kevin Mansell, Kohl’s chairman, president and chief executive officer, attributed the results to lower-price strategy, which led to significantly lower gross margins. Even though net income was down slightly, he said “strong management of expenses” allowed the company to meet its earnings goal for the quarter.
Kohl’s ended the quarter with 1,134 stores in 49 states, compared with 1,097 stores at the same time last year. During the first quarter, the company opened nine new stores, including one relocated store, closed one store, plans to open approximately 10 more stores in the fall, and plans to remodel approximately 50 stores in 2012.
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