Kohl's sees slight drop in net income

MENOMONEE FALLS, Wis. Kohl’s reported net income for the quarter ended May 2 of $137 million, or 45 cents per diluted share, compared with $153 million, or 49 cents per diluted share, a year ago. Net sales were $3.6 billion, an increase of 0.4% for the quarter. Comparable-store sales for the quarter decreased 4.2%.

Kevin Mansell, Kohl’s president and CEO, said, “We achieved our goal of gaining market share through our performance in both comparable and total sales in the first quarter. Our merchandise margins improved through strong inventory management and successful exclusive brand strategies. We also managed expenses well while improving our store experience. We continue to expect 2009 to be challenging from a macro-economic perspective and, therefore, remain conservative in our sales expectations, inventory levels and expenses. We are focused on gaining market share in this difficult environment.”

The company provided initial guidance for its second fiscal quarter ending August 1 of 56 cents to 64 cents per diluted share. The company also updated its guidance for fiscal 2009 to $2.19 to $2.42 per diluted share, reflecting its first quarter results, from its initial guidance of $2.00 to $2.30 per diluted share.