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Kohl's posts decline in FY16 sales and earnings

By Prachi Singh

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Report

Kohl’s sales for the fourth quarter of 6,205 million dollars were down 2.8 percent with comparable sales decline of 2.2 percent. For the fiscal year 2016, the company reported total sales of 18,686 million dollars, a decline of 2.7 percent on the prior year with comparable sales down 2.4 percent.

“Sales results were weak for the quarter in total, driven by declines in brick and mortar traffic, and offset somewhat by strength in online demand,” said Kevin Mansell, Kohl's Chairman, CEO and President in a media release, adding, “In 2017, we will accelerate our focus on becoming the destination for active and wellness with the launch of Under Armour in early March.”

Update on the Q4 and FY16 results

Excluding non-recurring items and reported net income for the fourth quarter was 252 million dollars against 296 million dollars in the same quarter last year, a decrease of 15 percent and diluted earnings per share of 1.44 dollars decreased 9 percent. FY16 net income declined 17 percent to 673 million dollars and diluted earnings per share were down 10 percent to 3.11 dollars. Excluding non-recurring items, net income for the year was down 14 percent to 673 million dollars and diluted earning per share were down 6 percent to 3.76 dollars.

On February 22, 2017, Kohl's Board of Directors declared a quarterly cash dividend on the company's common stock of 0.55 dollar per share, a 10 percent increase over its prior dividend.

Kohl's ended the fiscal year with 1,154 Kohl's stores in 49 states. During 2016, the company opened 9 small format Kohl's stores, closed 19 Kohl's stores, opened two Off/Aisle locations, and 12 Fila outlets.

Reveals earnings outlook for FY17

The company expects to report earnings per diluted share of 3.50 dollars to 3.80 dollars for fiscal 2017. This guidance is based on the assumptions of total sales change of 1.3 percent to 0.7 percent, which includes sales of approximately 160 million dollars in the 53rd week. Comparable sales change of 2 percent to 0 percent.

Picture:Facebook/Kohl's

Kohl's