Kohl’s lowers FY15 earnings guidance

Kohl’s Corporation said that excluding debt extinguishment losses recorded in prior quarters, fiscal 2015 diluted earnings per share is expected to be 3.95 dollars-4 dollars, down from its previously stated guidance of toward the low end of 4.40 dollars to 4.60 dollars per diluted share. The company said that change in guidance is a result of lower than planned sales for the quarter and significantly lower than planned gross margin.

“While we experienced our fifth consecutive quarter of positive comparable sales increases, sales were very volatile and less than planned in the fourth quarter. We experienced a very strong holiday selling season from the week of Thanksgiving through Christmas. These results were offset by a very slow start to the quarter in early November and a weaker-than-expected January as soft demand for cold-weather goods led to lower store traffic in these more discretionary shopping periods.” said Kevin Mansell, Kohl's chairman, CEO and President.

Gross margin, Kohl’s said was affected by the origin and timing of the sales in addition to the competitive promotional environment which resulted in higher than expected markdowns on both year-round and seasonal merchandise. its fourth quarter comparable sales increased 0.4 percent and fiscal 2015 comparable sales increased 0.7 percent. Total sales increased 0.8 percent for the fourth quarter and 1.0 percent for fiscal 2015. The company now expects its fiscal 2015 diluted earnings per share to be 3.40 dollars to 3.45 dollars.