Department store operator Kohl’s has reported a 4% decline in first-quarter net profit after seeing lower-than-expected sales at the beginning of the period.
Even so, the company still outperformed its earnings guidance as gross margin results and expense management were better than expected.
Kohl’s, which operates 1,155 stores, said net income slipped to $147 million, from $154 million in the same quarter last year. Sales edged down 1% to $4.20 billion from $4.24 billion, while comparable store sales slipped 1.9%.
“After a slow start, sales improved considerably in April as the weather finally improved in our most weather-sensitive regions,” noted chairman, president and CEO Kevin Mansell.
He added: “Our inventory levels are consistent with our expectations.”
Looking forward, Kohl’s expects second-quarter earnings per share to be $1.00-1.08 and sales to grow 1-3% and comparable store sales to rise 0-2%.
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