Kohl’s Corporation (NYSE: KSS), today reported fiscal 2015 fourth quarter results for period ended on January 30, 2016. The quarterly results marked the department store company`s sales marginal miss while beat the earnings estimates at the same time.
Kohl’s reported total net sales of $6.387 billion, slightly rose by 0.8% compared with the $6.337 billion in the fourth quarter of 2014 and almost reached the Zacks Consensus Estimate of $6.390 billion. The quarterly earnings decrease 14% to $1.58 per share compared with the same period in last year, yet beating Zacks Consensus Estimate of $1.55 by 1.9%.
The lower-than-expected net sales mainly attributed to the depressed market for cold-weather goods in this winter. In fact, the decrease on demand for apparel and accessories are hurting sales at other department stores like Macy`s and JCPenney as well. Suffering a deep drought from the sharp decrease in the consumer spending, the company plans to open seven smaller format pilot stores across the country and two Off-Aisle pilot stores in Wisconsin. The outlet space will also be added into 12 Fila brand stores. Besides, the company plans to close 18 underperforming stores, which may cause a decrease in total sales from $150 million to $170 million in 2016.
Kevin Mansell, Kohl’s chairman, president and chief executive officer, said, “We see exciting growth potential in the new stores and new formats that we are opening this year and are heavily investing in the health of our overall stores portfolio to continue to serve our current and future customers,” As for the decision of closing stores, Mansell commented that “While the decision to close stores is a difficult one, we evaluated all of the elements that contribute to making a store successful, and we were thoughtful and strategic in our approach. We are committed to leveraging our resources on our more productive assets,” Mansell said.