Kohl's 2Q earnings up 20.3%

MENOMONEE FALLS, Wis. Kohl's Corp. Wednesday reported second quarter earnings per diluted share increased 20.3% to 83 cents from 69 cets in last year's period. Net income was $269.2 million compared with $232.4 million a year ago, an increase of 15.9%. Net sales increased to $3.6 billion from $3.3 billion a year ago, an increase of 8.7% for the quarter. Comparable-store sales increased 1.3% for the same period.

For the six months ended Aug. 4, net income increased 19.7% to $478.2 million or $1.48 per diluted share, compared to $399.6 million or $1.17 per diluted share for the six months ended July 29, 2006. Net sales increased 10.2% to $7.2 billion from $6.5 billion a year ago. Comparable-store sales increased 2.5% for the same period.

Larry Montgomery, Kohl's chairman and ceo, said, "After a strong start to the quarter in May, our sales performance was affected by the performance of our seasonal businesses in June and July. Strength in our other businesses remained consistent and our early read on back-to-school is positive. We continue to achieve improvement in our operating margin in excess of both our short-term and long-range goals."

The company issued its initial guidance for the third and fourth quarter of fiscal 2007. Assuming a comparable sales increase of 2% to 4%, the company would expect earnings per diluted share of 67 cents to 71 cents in the third quarter. For the fourth quarter, assuming comparable sales of 1% to 3%, the company would expect earnings per diluted share of $1.63 to $1.69. This would result in earnings per diluted share of $3.77 to $3.87 for fiscal 2007 versus its previous guidance of $3.75 to $3.87 per diluted share.