KOHL’S AND DILLARD’S DISAPPOINT INVESTORS WITH SECOND-QUARTER RESULTS
Wisconsin-based department store chain Kohl’s and Arkansas-based retailer Dillard’s both reported second quarter financial results today.
Kohl’s reported earnings per share of $1.24 per share, as opposed to 0.77 last year. Net income jumped nearly 50 percent to $208 million from $140 million, but total sales were down just under one percent at $4.144 billion as opposed to 4.182 billion last year. Nonetheless, investors reacted negatively, with shares falling in the 7 to 8 percent range in morning trading.
“The traffic momentum that we saw in the combined March/April period accelerated in the second quarter,” said Kevin Mansell, the company’s CEO, chairman and president. “Although transactions for the quarter were lower than last year, July transactions increased. We are also excited by the sequential sales trend improvement in all our lines of business, all geographic regions, and in both our proprietary and national brand portfolios.”
Meanwhile, for the second quarter, Dillard’s reported a loss for the 13 weeks ended July 29, 2017 of $17.1 million, or $0.58 per share, compared to net income of $12.1 million, or $0.35 per share, for the prior year second quarter. Net sales for the same period were $1.427 billion and $1.452 billion, respectively.
“Significant markdowns led to a disappointing loss as we dealt with inventory,” commented CEO William A. Dillard.
The chain took an even bigger hit on the New York Stock Exchange, as shares of the company plunged over 15 percent in morning trading.
