Kohl’s Q1 sales drop but earnings improve

Kohl’s total sales for the first quarter of 3,843 million dollars against 3,972 million dollars for the same quarter last year, dropped 3.2 percent. Comparable store sales were down 2.7 percent compared to the 3.9 percent drop last year. Gross margin expanded 83 bps to 36.4 percent, while reported net income improved 288 percent to 66 million dollars and reported diluted earning per share of 0.39 dollars were up 333 percent. Excluding non-recurring items, net income of 66 million dollars improved 15 percent and diluted earnings per share were up 26 percent to 0.39 dollar.

Commenting on the development, Kevin Mansell, Kohl's Chairman, CEO and President, said, "We are encouraged by the significant improvement in sales and traffic for the March and April period, after a weak February start to the first quarter. Continued strong inventory management led to a major improvement in gross margin, and our teams managed expenses exceptionally well. I am pleased to say that combined together these efforts led to an increase in income for the period."

On May 10, 2017, the Kohl's Board of Directors declared a quarterly cash dividend on the company's common stock of 0.55 dollar per share. Kohl’s ended the quarter with 1,154 Kohl's stores, 12 Fila Outlet stores, and three Off/Aisle clearance centers in 49 states, compared with 1,167 Kohl's stores at the same time last year.

Picture:Facebook/Kohl's