Kohl's Corporation (KSS) has reported 21.67 percent rise in profit for the quarter ended Oct. 29, 2016. The company has earned $146 million, or $0.83 a share in the quarter, compared with $120 million, or $0.63 a share for the same period last year.
Revenue during the quarter went down marginally by 2.26 percent to $4,327 million from $4,427 million in the previous year period. Gross margin for the quarter expanded 3 basis points over the previous year period to 37.14 percent. Total expenses were 93.04 percent of quarterly revenues, up from 93.04 percent for the same period last year.
Operating income for the quarter was $301 million, compared with $308 million in the previous year period.
Kevin Mansell, Kohl's chairman, chief executive officer and president, said, "We are pleased to see continued improvement in our sales trends. Our back-to-school season was strong, followed by a soft September, and progressive improvement throughout October. We are encouraged by these trends as we enter the Holiday season. Our teams did an excellent job managing inventory. Expenses were also well-controlled as substantially all teams outperformed their plans."
For financial year 2016, Kohl's Corporation projects diluted earnings per share to be in the range of $3.80 to $4.00.
Operating cash flow improves significantly
Kohl's Corporation has generated cash of $1,280 million from operating activities during the nine month period, up 214.50 percent or $873 million, when compared with the last year period.
The company has spent $584 million cash to meet investing activities during the nine month period as against cash outgo of $548 million in the last year period.
The company has spent $806 million cash to carry out financing activities during the nine month period as against cash outgo of $765 million in the last year period.
Cash and cash equivalents stood at $597 million as on Oct. 29, 2016, up 19.16 percent or $96 million from $501 million on Oct. 31, 2015.
Working capital declines
Kohl's Corporation has witnessed a decline in the working capital over the last year. It stood at $2,128 million as at Oct. 29, 2016, down 6.01 percent or $136 million from $2,264 million on Oct. 31, 2015. Current ratio was at 1.60 as on Oct. 29, 2016, up from 1.57 on Oct. 31, 2015.
Days inventory outstanding has decreased to 79 days for the quarter compared with 155 days for the previous year period. At the same time, days payable outstanding was almost stable at 61 days for the quarter, when compared with the previous year period.
Debt comes down
Kohl's Corporation has recorded a decline in total debt over the last one year. It stood at $4,624 million as on Oct. 29, 2016, down 9.95 percent or $511 million from $5,135 million on Oct. 31, 2015. Total debt was 32.85 percent of total assets as on Oct. 29, 2016, compared with 34.47 percent on Oct. 31, 2015. Debt to equity ratio was at 0.91 as on Oct. 29, 2016, down from 0.94 as on Oct. 31, 2015. Interest coverage ratio improved to 3.96 for the quarter from 3.80 for the same period last year.
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