Department store Kohl’s Corporation (KSS) posted negative same-store sales results for the month of September compared with the prior-year period. The total sales for the period also decreased due to a challenging macro-environment.
Kohl’s comparable store sales was negative 2.7% for the five-weeks ended September 29, 2012 versus a positive 4.1% same-store sales growth in the five-week month ended October 1, 2011. Kohl’s total sales dipped 1.4% in the month of September 2012 to $1.61 billion, compared to 5.8% growth with sales of $1.63 billion in the year-ago month.
Kohl’s net sales declined 1.0% year over year to $4.2 billion in the second quarter 2012 earnings, which released on August 9, due to a 2.7% year over year decline in comparable store sales.
Kohl’s also stated that it expects sales growth in a range of 1% to 3% while comparable-store sales growth is expected to be flat to 2% for the third quarter of 2012. However, the company’s negative same store sales in the month of September might lead to negative same-store sales for the third quarter of 2012, results of which are expected to release on November 8, 2012.
On the other hand, Kohl’s competitor, Ross Stores Inc. (ROST) reported growth in same-store sales of 5% for the five-weeks ended September 29, 2012, up from the 5% growth in the five-week month ended October 1, 2011. Net sales for the month marked an increase of 10% to $800 million from $726 million reported in the prior-year period.
Kohl’s, which operates 1,146 stores in 49 states, holds a Zacks #3 Rank (short-term Hold rating). Currently, we maintain a long-term Neutral recommendation on the stock.
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