Kohl’s has recorded a drop in fourth-quarter earnings on the back of costs related to its e-commerce business.
In the three months to February 1, net profit slid 12% to $334 million. Unanticipated expenses in servicing its e-commerce business led to higher than expected costs for the quarter.
Sales were down 3.8% to $6.1 billion as a result of lower traffic and low levels of clearance merchandise.
Based on assumptions of total sales increases of 0.5% to 2.5% and comparable sales increases of 0 to 2%, the company said it expects full-year earnings per diluted share of $4.05 to $4.45.
UBS analyst Michael Binetti said the results were largely in line with consensus.
“Like the peer group, we expect to hear about weather-hindered negative sales through Valentine’s Day that have turned positive in late-February.”
For more fashion and apparel industry news, go to just-style.com