All metrics point to a strong holiday season for Kohl’s Corp., which released healthy third quarter financials today.
The Menomonee Falls-based retailer said its net income for the quarter increased 20% $211 million, compared to $176 million, or $0.57 per diluted share, in the same period one year ago.
Net sales were $4.4 billion, an increase of 3.8% over the prior year quarter; comparable store sales for the quarter increased 2.1%.
Kevin Mansell, Kohl’s chairman, president and chief executive officer, said the launch of the Jennifer Lopez and Marc Anthony brands during the quarter met the company’s sales expectations. Kohl’s anticipates its overall collection of brands to “deliver a strong holiday season,” he added.
The company also announced that quarterly diluted earnings per share increased 40% to $0.80. A quarterly cash dividend of $0.25 per share of Kohl’s common stock was declared.
On a year-to-date basis, diluted earnings per share increased 26% to $2.56.
The long view
For the first nine months of fiscal year 2011, Kohl’s net income was $711 million, compared with $626 million, or $2.03 per diluted share, for the first nine months of fiscal 2010.
Meanwhile, net sales for that period were $12.8 billion, an increase of 3.5%. Year-to-date comparable store sales increased 1.7%.
For the fourth quarter, Kohl’s expects total sales to increase between 4% and 6%, and comparable store sales to grow between 2% and 4%.
Based on projected share repurchases of approximately $300 million in the fourth quarter, the company expects Q4 earnings per diluted share of $1.93 to $2.04.
In addition, Kohl’s is increasing its fiscal 2011 guidance from $4.34 to $4.49 per diluted share to $4.41 to $4.52 per diluted share.
Kohl’s has opened 40 stores in 2011, including 31 in the third quarter, bringing its total number of stores to 1,127 stores in 49 states
As of 4 p.m. Eastern time on Nov. 10, shares of Kohl’s common stock rose $1.07 on volume of 6.3 million shares. The company trades on the New York Stock Exchange under the symbol KSS.
