Kohl's Corp. Reports Operating Results (10-Q)
Kohl's Corp has a market cap of $12.25 billion; its shares were traded at around $44.65 with a P/E ratio of 12 and P/S ratio of 0.7. The dividend yield of Kohl's Corp stocks is 2.5%. Kohl's Corp had an annual average earning growth of 12.7% over the past 10 years. GuruFocus rated Kohl's Corp the business predictability rank of 4-star.
Highlight of Business Operations:Gross margin as a percent of net sales decreased 44 basis points from the third quarter of 2011 and 143 basis points from the first nine months of 2011 as we focused on improving value for our customer during the current year. Selling, general and administrative expenses as a percent of net sales improved, or “leveraged,” in both periods. Stores, especially payroll, provided the most significant leverage. Advertising and corporate expenses also leveraged for the quarter.
Net sales increased 2.6% from $4.4 billion in the third quarter of 2011 to $4.5 billion in the third quarter of 2012. Year to date, net sales increased 1.2% from $12.8 billion for the first nine months of 2011 to $12.9 billion for the first nine months of 2012. On a comparable store basis, sales increased 1.1% for the quarter and decreased 0.5% year to date. We define comparable store sales as sales from stores (including relocated and remodeled stores) open throughout the full current and prior fiscal periods and from E-Commerce.
The increases in average unit retail are the result of changes in our pricing strategy. During the Fall of 2011, we increased our prices as we passed higher apparel costs on to our customers. During 2012, we reduced our prices, but they remained higher than 2011. Year to date, units per transaction and number of transactions declined in part due to insufficient inventory levels in the first several months of the year to meet the sales demand which resulted from the price reductions.
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