(Filed Under Financial and General Interest News). Department store chain Kohl’s Corp. reported a 20 percent rise in third-quarter profit to $211 million, or 80 cents a share, up from $176 million, or 57 cents a share, in the third quarter of 2010.
Strong sales growth led to the boost in net profit, which exceeded company expectations of 73 to 79 cents a share for the quarter. It also led Kohl’s to raise its full-year earnings forecast to a range of $4.41 to $4.52 a share, up from an earlier estimate of $4.34 to $4.49 a share.
Kohl’s stores specialize in mid-price apparel and accessories as well as home goods and décor. The company’s exclusive apparel brands include lines by Vera Wang and Lauren Conrad as well as recently launched collections from Jennifer Lopez and Marc Anthony, which "met our aggressive sales plans," according to C.E.O. Kevin Mansell. The increased portion of these brands helped increase gross margins to 38.6 percent, up from 38.4 percent in the prior year’s period.
"We expect our collection of powerful brands — supported by significant marketing investments, especially in broadcast and digital media — to deliver a strong holiday season," stated Mansell. For the current quarter, Kohl’s expects a profit range of $1.93 to $2.04 per share on a sales growth range of 4 to 6 percent, plus a 2 to 4 percent increase in comparable store sales.
Menomonee Falls, Wis.-based Kohl’s Corp. currently operates 1,127 department stores in 49 states.
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