News
May 18, 2007 - Wall Street Journal
KOHL'S INCREASES PROFIT ESTIMATE ON STRONG SALES
Kohl's Corp. raised its fiscal-year profit forecast after posting strong sales throughout its stores in the first quarter ended May 5.
Chief Executive Larry Montgomery said the Menomonee Falls, Wis.,
retailer's sales of exclusive brands -- such as partnerships on boy's clothing
and shoes with skateboarding icon Tony Hawk and coming pairings with
the Food Network -- continue to gain momentum.
He said the company saw such a positive result from its new line of
clothes with Elle fashion magazine that it will be putting them in 500
stores, up from the 300 it had originally planned for this spring.
That is part of a trend of several high-end lines Kohl's is putting in its
stores this year. One of the most anticipated lines, Mr. Montgomery said,
is Simply Vera -- a line of accessories, jewelry, footwear, clothing and
other items -- by designer Vera Wang.
Exclusives such as Ms. Wang's coming line count for about 10% of sales,
while private-label brands, such as Sonoma and apt. 9, are about 25%.
"I think our existing customer has been asking for a little tick-up in
fashion and quality and having more out there, in terms of updated
contemporary styling," Mr. Montgomery said. "But it's also appealing to a
customer who traditionally didn't shop at Kohl's."
Mr. Montgomery said Kohl's expects customers will continue to spend
money, especially during the back-to-school months this summer, even
though questions abound about the economy, including rising gasoline
prices and a slow housing market.
The company raised its projection for per-share earnings for the full fiscal
year to a range of $3.75 to $3.87 from a range of $3.68 to $3.84. Sales in
the quarter rose 12%.
Copyright © 2007 Associated Press