Kohl’s Corp. posted a 44.7 percent increase in third-quarter earnings on Thursday, driven by new store growth and demand for improved merchandise.
For the three months ended Oct. 28, net income surged to $224.5 million, or 68 cents a diluted share, from $155.1 million, or 45 cents, in the year-ago period. Sales jumped 16.6 percent, to $3.64 billion from $3.12 billion, while total same-store sales rose 8.5 percent.
For the nine-month period, earnings increased 33.6 percent, to $624.1 million, or $1.85 a diluted share, from $467 million, or $1.35 cents, last year. Sales rose 15.6 percent, to $10.11 billion from $8.75 billion.
The retailer’s gross margin rate rose 50 basis points to 36.9 percent in the quarter from 36.4 percent in the prior year as selling, general and administrative costs as a percent of sales declined to 23.50 percent from 24 percent.
“We delivered solid top-line growth and outstanding profitability. We continue to see consistency in all lines of business and all regions of the country. This has allowed us to generate profitable market share growth,” Larry Montgomery, chairman and chief executive officer of the mass retailer, said in a statement.
During the quarter, in October, Kohl’s opened 65 new stores in 30 states. Kohl’s said this was the “largest one-day opening in its history.”
The company reaffirmed fourth-quarter earnings of $1.36 to $1.42 a diluted share, and raised full-year earnings to $3.16 to $3.24 a diluted share from previous guidance of $3.04 to $3.13.
Earlier this month, the company reported October comps gained 4.2 percent. Montgomery said in a statement on Nov. 2 that the retailer continues “to see consistency in sales performance across all lines of business and in all regions of the country. We believe we are well-positioned for the upcoming holiday season.”