Kohl's Corporation reported third quarter diluted earnings per share increased 14%to$0.91 per diluted share.Net income was$215 million compared to$211 million($0.80 per diluted share)a year ago.Net sales were$4.5 billion,an increase of 2.6%for the quarter.Comparable store sales for the quarter increased 1.1%.
Year to date,net income was$609 million($2.54 per diluted share)compared to$711 million($2.56 per diluted share)a year ago.Net sales were$12.9 billion,an increase of 1.2%.Year-to-date comparable store sales decreased 0.5%.
Kevin Mansell,Kohl's chairman,president and chief executive officer,said,"Our sales performance in the third quarter was consistent with our expectations,while our gross margin results were better than expected.
"Thanks to our dedicated teams,expenses were again well-managed.We have made noticeable investments in Holiday inventory-both in depth and content-and the in-store experience.Our stores are festive and fun to shop.We are also very excited about our expanded gift strategy and our ability to offer great products at great values."
Capital Structure
On November 7,2012,Kohl's Board of Directors declared a quarterly cash dividend on the Company's common stock of$0.32 per share.The dividend is payable December 26,2012 to shareholders of record at the close of business on December 5,2012.
Kohl's Board of Directors also increased the Company's share repurchase authorization under its existing share repurchase program by$3.2 billion,to$3.5 billion.The Company expects to repurchase shares in open market transactions,subject to market conditions,over the next three years.
Store Update
Kohl's ended the quarter with 1,146 stores in 49 states,compared with 1,127 stores at the same time last year.During the year,the Company opened 21 new stores,including 1 relocated store,closed 1 store and completed 50 remodels.
Earnings Guidance
The Company provided initial guidance for the fiscal quarter ending February 2,2013 of$2.00 to$2.08 per diluted share.The guidance is based on total sales growth of 7 to 8 percent and comparable store sales growth of 3 to 4 percent and includes expected fourth quarter share repurchases of$300 million.After incorporating its third quarter results and fourth quarter outlook,the Company now expects to earn$4.52 to$4.60 per diluted share for fiscal 2012 versus its previous guidance of$4.50 to$4.65 per diluted share.
Based in Menomonee Falls,Wis.,Kohl's is a family-focused,value-oriented specialty department store offering moderately priced,exclusive and national brand apparel,shoes,accessories,beauty and home products in an exciting shopping environment.
