Kohl’s Q2 profit down 3%, lifts full-year view

Menomonee Falls, Wis. Kohl's Corp. said Thursday that its fiscal second-quarter profit dipped 3% on higher expenses, but its results managed to narrowly beat Wall Street's expectations. The chain also reported an uptick in quarterly sales and raised its full-year earnings outlook. Its third-quarter outlook, however, came in below analysts' views.

The retailer earned $229 million for the period ended Aug. 1, down from $236 million a year earlier. Its performance topped analysts’ views. Selling, general and administrative expenses increased to $966 million from $930 million, and other types of expenses rose as well.

Sales rose 2% to $3.81 billion from $3.73 billion to surpass Wall Street's estimate of $3.79 billion. Same-store sales fell 2.3%.

"Sales for the first half of 2009 exceeded our plans and indicated market share gains across most merchandise areas and regions," president and CEO Kevin Mansell said in a statement.

But same-store sales showed some weakness, falling 2.3% during the quarter.

Kohl's plans to open 37 more stores later this year for a total of 56 stores.