Kohl’s says sales climb in December; better-than-expected results are best of the year

Kohl’s sales climb in December

MENOMONEE FALLS, Wis. — Kohl’s Corp. raised its fourth-quarter profit guidance on Thursday after December sales climbed at a faster-than-expected pace as shoppers gravitated toward its discount prices during the holidays.

For the five weeks that ended Jan. 2, Kohl’s said its sales in stores open at least a year rose 4.7 percent with sales higher across all regions and categories, especially in shoes and accessories. Analysts surveyed by Thomson Reuters had expected the sales to rise just 3.6 percent.

Sales in stores open at least a year are a key retail measure because they track sales in established locations, instead of newly opened ones.

Total monthly sales, meanwhile, rose 8.8 percent to $3.01 billion, led by stores in the Southwest.

“We are pleased that our best sales performance of the year occurred in the most important month of the year,” Kevin Mansell, Kohl’s chairman, president and CEO, said in a statement. “We continue to see strong increases in transactions per store, indicating customers are selecting Kohl’s when they choose to shop, while maintaining their conservative spending.”

Kohl’s boosted its fourth-quarter guidance to a range of $1.28 and $1.30 per share from prior guidance of $1.14 to $1.24. Analysts the discount department store operator to earn $1.28 per share for the period, on average.

The retailer said it expects sales in locations open at least a year to be flat in January.

Kohl’s, which is based in Menomonee Falls, Wis., operates more than 1,000 stores in 49 states.

Shares slipped $2.29, or 4.2 percent, to $52.43 in morning trading.