Net income falls 3%

Total sales increase by 2.2%

Raises FY earnings guidance

US department store retailer Kohl's Corporation has raised its full-year earnings guidance after first quarter sales exceeded expectations.

Kevin Mansell, Kohl's president and chief executive officer, said sales "indicated market share gains across most merchandise areas and regions."

He added that demand for the retailer's private and exclusive brands had also boosted gross margins.

For the three months to 1 August, net sales rose 2.2% to $3.8bn, the retailer said today (13 August), but same-store sales for the quarter fell 2.3%.

Net income slipped 3% to $229m or $0.75 per share, from $236m, or $0.77 per share, a year ago.

Looking ahead, the company expects both third and fourth quarter sales to range from down 1% to up 1%, and comparable store sales falling between 3% and 5%.

For the fiscal year, its updated guidance is $2.59 to $2.70 per share.