Department stores operator Kohl's Corp. (KSS) is set to report its third-quarter earnings before the market opens Thursday. While announcing October comparable store sales, the company reported a 6.5% rise in its third-quarter sales and lifted its quarterly earnings per share outlook. In addition, analysts expect a year-over-year rise in quarterly earnings for the Menomonee Falls, Wisconsin-based company.
On November 5, the company reported its comparable store sales results for the month of October, and said that comps rose 1.4% for the four-week period ended on October 31, and total monthly sales grew 4.9% to $1.27 billion from $1.21 billion last year. For the month of September, the company's comparable store sales were up 5.5% while total sales grew 9.6%.
At that time, Kohl's has lifted its third-quarter earnings guidance in light of October's sales performance and strong inventory and expense management. The company expects quarterly earnings per share of $0.60 to $0.61, compared with $0.52 to $0.54 projected previously. In the year-ago quarter, the company had reported earnings of $0.52 per share.
On average, 20 analysts polled by Thomson Reuters expect a profit of $0.61 per share for the quarter. Analysts' estimates typically exclude one-time items.
The company has reported total sales for the third quarter of $4.05 billion, up 6.5% from $3.80 billion last year. Analysts forecasted sales of $4.03 billion for the quarter. Comparable store sales for the third quarter were up 2.4%.
For the year-to-date period, Kohl's total sales grew 3.1% to $11.50 billion from $11.15 billion last year. Comparable store sales declined 1.3%.
Among recent events, the company on September 30 announced the opening of 37 new stores that have created more than 5,200 jobs across six states. The retailer opened 56 stores in total in 2009, and now operates 1,059 stores in 49 states.
In August, Kohl's said that its Board of Directors named Chief Executive Officer Kevin Mansell as chairman of the board, effective September 1, succeeding Larry Montgomery, who retired from the post on the same date. Mansell, who has been with the company for the past 27 years, also continues in his roles of president and chief executive officer. The appointment was part of Kohl's ongoing executive succession planning process. Montgomery will continue with the company and serve on the Board of Directors until January 30, 2010.
Kohl's rival Target Corp. (TGT) is slated to announce its third-quarter results on November 17. Wall Street analysts forecast earnings of $0.50 per share for the quarter on sales of $15.25 billion.
Analysts also expect warehouse clubs operator BJ's Wholesale Club, Inc. (BJ) would earn $0.45 per share for the third quarter when it reports earnings on November 18.
Last week, Target and BJ's reported lower comparable-store sales for the month of October. Target reported a 0.1% decline in its October comparable-store sales, compared with a decline of 4.8% last year. The company, which currently operates 1,743 Target stores in 49 States, generated October net retail sales of $4.54 billion, up 2.8% from $4.42 billion in the prior-year month.
BJ's, which currently operates 184 BJ's Wholesale clubs and 104 gasoline stations in 15 States, reported a 3.5% rise in its October 2009 sales to $764.7 million from $738.9 million in October 2008. On a comparable club basis, sales for the month decreased 1.1%, compared with a decline of 2.5% last year. The company's October 2009 results included a negative impact from the sales of gasoline worth 4.8%.
For the third quarter, BJ's total sales were up 2% to $2.45 billion from $2.40 billion in the prior-year quarter. Comparable club sales were down 2.5%, including a negative impact from sales of gasoline of 6.4%.
KSS closed Wednesday's trading at $54.59, down $1.77, on a volume of 8.11 million shares.
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