Kohl's sees 4Q net income fall

MENOMONEE FALLS, Wis. Kohl’s today reported that net income for the quarter ended Feb. 2 was $411.7 million, or $1.31 per diluted share, compared with $484.6 million, or $1.48 per diluted share, a year ago. Net sales were $5.5 billion, an increase of 0.7% for the quarter. Comparable-store sales for the quarter decreased 4%.

The company reported that net income for the fiscal year ended Feb. 2, 2008, net income was $1.1 billion, or $3.39 per diluted share, compared with $1.1 billion or $3.31 per diluted share, a year ago. Net sales were $16.5 billion for the year, an increase of 5.6% over $15.6 billion a year ago. On a comparable 52-week basis, comparable-store sales decreased 0.8%.

Larry Montgomery, Kohl’s chairman and ceo, said, “2007 proved to be a difficult year for most retailers, and Kohl’s was no exception. Despite a challenging year which saw deep discounts across the industry, our gross margin increased over the prior year as a result of improved inventory management and increased penetration from our private and exclusive brands. Additionally, we achieved record sales for our sixteenth consecutive year as a public company and increased our diluted earnings per share over last year.” 

Based on assumptions of a total sales increase of 5% to 8% and a comparable sales change of 0% to negative 3%, the company expects earnings per diluted share of $3.15 to $3.50 for the year. For the first fiscal quarter, the company expects earnings per diluted share of 50 cents to 54 cents.