Menomonee Falls-based retailer Kohl’s reported today a 4.2% decline in second quarter sales, compared to a year ago, but its second quarter net income rose 13.7% compared to a year ago.
The company reported net income of $66 million for the second quarter and sales of $3.53 billion.
“During the second quarter, our customers exhibited more discretion in their spending, which pressured our sales even as customers transacted more frequently,” said Tom Kingsbury, Kohl’s chief executive officer. “We continued to execute well operationally, enabling us to deliver a 13% increase in earnings driven by gross margin expansion, strong inventory and expense management.”
The company again adjusted its full-year guidance, giving net sales a new decrease range of 4% to 6%, compared to last quarter’s forecasted range of 3% to 5% and the previous quarter’s 1% increase to 1% decrease.
But, on the cusp of opening 11 previously bankrupted Babies “R” Us shop-in-shops in Wisconsin, Kohl’s is rolling into Q3 with profitable Q2 metrics to support a potential change of business.
“We will capitalize on new opportunities such as our partnership with Babies “R” Us and expect to continue to benefit from our key growth areas,” said Kingsbury.
