May 11 Department store operator Kohl's Corp
reported a better-than-expected quarterly profit, helped
by lower costs and a leaner inventory amid a tough retail
environment in the United States.
Kohl's sales and comparable-store sales both fell for the
fifth straight quarter and missed analysts estimates in the
latest three-month period ended April 29.
Kohl's and rivals such as Macy's Inc and J.C. Penney
Co Inc are struggling with declining mall traffic and
tough online competition, and are trying to cope by cutting
costs through store closures, selling or leasing their real
estate and keeping inventory levels low.
Customer traffic at Kohl's stores improved in March and
April after a weak February, Chief Executive Kevin Mansell said
in a statement.
Kohl's net income soared to $66 million in the first quarter
from $17 million a year earlier, when it recorded a $64 million
charge related to impairments and store closures.
The company said merchandise inventories fell 2.3 percent,
while selling and general expenses fell 3.3 percent in the
On a per share basis, Kohl's earned a profit of 39 cents,
beating the average analyst estimate of 29 cents, according to
Thomson Reuters I/B/E/S.
Kohl's net sales dropped 3.2 percent to $3.84 billion,
missing the average analyst estimate of $3.90 billion.
Sales at stores open more than a year fell 2.7 percent, much
steeper than the 1.1 percent decline expected by analysts polled
by research firm Consensus Metrix.
(Reporting by Sruthi Ramakrishnan in Bengaluru; Editing by