Kohl's Posts Powerful Gains

Fueled by rising sales, beefed up margins and tighter inventory controls, fourth-quarter profits at Kohl's Corp. soared up 29.3%, to $484.6 million from $374.9 million during the all-important Christmas quarter.

Sales jumped 16.7%, to $5.4 billion from $4.7 billion, boosted by new store openings. Same-store sales climbed 4.1% during the quarter, up 5.9% for the year.

Driving the profit growth, in addition to rising sales, the retailer strengthened average gross margin by 140 basis points, or 1.4 percentage points, to 35.3% from 33.9% during the same period a year ago. Costs were held in check, rising as a percentage of sales by just 30 basis points, or three-tenths of a percentage point, to 18.9% from 18.6%.

Under careful control, inventories grew slower than sales, rising 15.7%, vs. the 16.7% sales growth.

In another lift to the bottom line, the retailer slashed its interest costs by 46.8% during the quarter, to $10.0 million from $18.8 million a year ago, generating a cash savings of $8.8 million. Full-year savings totaled $30.4 million.

Kohl's Corp.

Qtr. 2/3 (x000) 2006 2005 % change
Sales $5,430,800 $4,615,900 16.7
Oper. Income (EBIT) 787,800 621,600 26.7
Net income 484,600 374,900 29.3
Per share (diluted) 1.48 1.08 37.0
Average gross margin 35.3% 33.9%
SG&A expenses 18.9% 18.6%
12 months
Sales 15,544,200 13,402,200 16.0
Oper. Income (EBIT) 1,814,800 1,416,200 28.1
Net income 1,109,700 842,000 31.7
Per share (diluted) 3.31 2.43 36.2
Average gross margin 36.4% 35.5%
SG&A expenses 21.9% 22.1%

Home & Textiles Today Staff | News & Commentary

 Home Textiles Today is the market-leading brand covering the home and textiles markets, offering a comprehensive package of print and online products. Home & Textiles Today provides industry news, product trends and introductions, exclusive industry research, consumer data, store operations solutions, trade show news and much more.

Featured Video

  • 1200 Suppliers are Ready for You at Intertextile Shanghai

    Camera Icon More Videos

Subscribe to
Home & Textiles Today eDaily
Receive the news you need to know about the trends in the industry delivered right to your inbox.


HTT August 2017

See the August 2017 issue of Home & Textiles Today. In this issue, we look at the Top 50 Retailing Giants Report, plus Manufacturing: Made in the USA gaining ground; International: Portugal ramping up exports; New products: NY Now home textiles introductions; Outlook: Commentary from H&TT's editors; and Planning: Trade show calendar.

See details!