MENOMONEE FALLS, Wis. (AP) — Kohl’s Corp.’s sales of exclusive brands and tight inventory control helped its third-quarter profit rise 21 percent, the company said Thursday.
The results led the department-store chain to raise its full-year earnings guidance.
Kohl’s has benefited from its expansion of exclusive brands like Dana Buchman and Simply Vera Vera Wang, as well as cost-cutting.
“We continue to experience improvement in inventory management and increased penetration in ‘Only at Kohl’s’ brands,” CEO Kevin Mansell said in a statement.
Many retailers have been cutting the inventory they carry. That helps them avoid having to mark down prices to clear out the merchandise as consumers have cut spending because of the weak economy.
Profit for the three months ended Oct. 31 rose to $193 million, or 63 cents per share, compared with $160 million, or 52 cents per share last year.
Revenue rose 7 percent to $4.05 billion, from $3.8 billion a year ago. Analysts expected earnings of 61 cents per share on revenue of $4 billion, according to Thomson Financial.
Sales in stores open at least a year rose 2 percent. That’s considered a key measurement of a retailer’s health because it excludes the effects of store expansion.
Kohl’s, based in Menomonee Falls, Wis., raised its full-year earnings guidance to $2.98 to $3.08 per share, from previous guidance of $2.59 to $2.70 per share. Analysts expect a profit of $3.02 per share.
In the fourth quarter, it expects total sales to rise 3 percent to 6 percent, implying sales of $5.4 billion to $5.55 billion. Analysts expect sales of $5.57 billion.
The company expects a profit of $1.14 to $1.24 per share for the fourth quarter, just short of analyst predictions of $1.25 per share.