Kohls Corporation (KSS) has reported 14.86 percent fall in profit for the quarter ended Jan. 28, 2017. The company has earned $252 million, or $1.44 a share in the quarter, compared with $296 million, or $1.58 a share for the same period last year.
Revenue during the quarter went down marginally by 2.85 percent to $6,205 million from $6,387 million in the previous year period. Gross margin for the quarter expanded 33 basis points over the previous year period to 33.39 percent. Total expenses were 92.38 percent of quarterly revenues, up from 91.53 percent for the same period last year. That has resulted in a contraction of 85 basis points in operating margin to 7.62 percent.
Operating income for the quarter was $473 million, compared with $541 million in the previous year period.
Kevin Mansell, Kohl's chairman, chief executive officer and president, said, "Sales results were weak for the quarter in total, driven by declines in brick and mortar traffic, and offset somewhat by strength in online demand. We saw improvement in merchandise margin, and our team continued to manage inventory and expenses extremely well. In 2017, we will accelerate our focus on becoming the destination for active and wellness with the launch of Under Armour in early March. We will also extend our efforts on improving our speed to market across all of our proprietary brands into all apparel areas and home."
For financial year 2017, the company forecasts diluted earnings per share to be in the range of $3.50 to $3.80.
Operating cash flow improves significantlyKohls Corporation has generated cash of $2,148 million from operating activities during the year, up 45.73 percent or $674 million, when compared with the last year. The company has spent $756 million cash to meet investing activities during the year as against cash outgo of $681 million in the last year.
The company has spent $1,025 million cash to carry out financing activities during the year as against cash outgo of $1,493 million in the last year period.
Cash and cash equivalents stood at $1,074 million as on Jan. 28, 2017, up 51.91 percent or $367 million from $707 million on Jan. 30, 2016.
Working capital decreases marginally
Kohls Corporation has witnessed a decline in the working capital over the last year. It stood at $2,273 million as at Jan. 28, 2017, down 3.77 percent or $89 million from $2,362 million on Jan. 30, 2016. Current ratio was at 1.76 as on Jan. 28, 2017, down from 1.87 on Jan. 30, 2016.
Days inventory outstanding has decreased to 42 days for the quarter compared with 43 days for the previous year period. At the same time, days payable outstanding went up to 17 days for the quarter from 13 for the same period last year.
Debt comes down marginallyKohls Corporation has recorded a decline in total debt over the last one year. It stood at $4,611 million as on Jan. 28, 2017, down 2.06 percent or $97 million from $4,708 million on Jan. 30, 2016. Total debt was 33.97 percent of total assets as on Jan. 28, 2017, compared with 34.60 percent on Jan. 30, 2016. Debt to equity ratio was at 0.89 as on Jan. 28, 2017, up from 0.86 as on Jan. 30, 2016. Interest coverage ratio deteriorated to 6.31 for the quarter from 6.85 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
