Sales growth weak at Kohl's in Q1

Kohl’s couldn't combat weak consumer spending in the first quarter despite launching a loyalty program and new advertising initiatives.

Kevin Mansell, Kohl's chairman, chief executive officer and president, said: "Sales were modestly below our original expectations for the quarter, but accelerated in the March/April combined period after a weak February. We are very pleased with our earnings results, with a more balanced promotional calendar driving merchandise margin combined with strong expense control."

Overall, for the first quarter ended May 2, Kohl’s reported a profit of $127 million, or 63 cents ashare, up slightly from $125 million, or 60 cents a share, a year earlier. Sales grew 1.3% to $4.12 billion. Analysts had expected per-share earnings of 55 cents and revenue of $4.19 billion. Gross margin improved slightly to 36.9% from 36.8%. Kohl’s opened two new stores during the quarter.

Macy's Inc said on Wednesday that first-quarter profit and sales were hurt by fewer customer visits due to unusually cold weather in February, disruptions at West Coast ports and lower foreign tourist spending in the United States.

Kohl's now operates 1,164 stores in 49 states, compared with 1,160 stores at the same time last year.