US: Kohl's Q1 profit hit by price cuts
- Q1 net income declined 23.3% to US$154m
- Net sales rose 1.9% to $4.2bn
- Comparable store sales increased 0.2%
US department store operator Kohl's has reported a decline in first-quarter net income as gross margin was hit by price cuts designed to lure in more customers.
The retailer saw net income decline 23.3% over the quarter ended 28 April to US$154m. Net sales rose 1.9% over the quarter to $4.2bn, while comparable store sales increased 0.2%. Gross margin fell to 35.9% from 38.1% in the same quarter of the prior year.
"Our first quarter results reflect the implementation of our strategy to initiate lower pricing in order to provide greater value to our customers," said chairman, president and CEO Kevin Mansell.
"This planned action led to significantly lower gross margins for the quarter. Strong management of expenses allowed us to achieve our earnings goal for the quarter.
"We have accelerated new receipts into second quarter to ensure we are well-positioned from an inventory perspective for the back-to-school season. The combination of these two actions should allow us to greatly improve our sales for the fall season."
US retailers have yet to weigh up the full impact of Hurricane Sandy, which hit the US East coast earlier this week between the back-to-school spending rush and the all-important shopping fest that li...
The following is a general roundup of US apparel and shoe retailers' October 2012 sales results....
A strong end to the back-to-school shopping season contributed to the solid sales results rung up by many US clothing and footwear retailers in September - but economic and political uncertainty conti...
The former head of investor relations for children's wear company Carter's, Eric Martin, has been charged by a federal grand jury around an insider trading scheme, the company's third former executive...
US department store operator Kohl's saw third quarter net income edge up on the back of rising sales. ...
Bangladesh's woven garment exports grew by nearly 10% in the first quarter of the current fiscal year despite the economic slowdown in the European Union (EU) and the US....
Luxury fashion brand Derek Lam has been bought back from Labelux by its founders Derek Lam and CEO Jan-Hendrik Schlottmann....
US department store chain Kohl's has unveiled its first clothing collection with fashion designer Narciso Rodriguez as part of the limited-edition DesigNation concept....
- Slow fashion: a fast-growing opportunity?
- Rethink needed as low-cost labour options dwindle
- China's apparel sector ponders sustainability
- US textile and apparel trade and sourcing snapshot
- African apparel sector needs cooperation to thrive
- Tazreen Fashions compensation agreement outlined
- Puma commits to 100% PFC removal
- Gap unveils management changes as Q3 profit rises
- Long-term partnerships key to Adidas sourcing mode
- Long-running SL Garment dispute settled