New York, NY, United States (4E) – Kohl’s Corp. reported 12 percent fall in profit during the fiscal fourth quarter, as the retailer’s sales were hit by lower traffic and lower levels of clearance merchandise last month, which offset the last two months’ slight growth.
The company said that the fiscal January 2013 retail calendar had five weeks, which resulted in a 14-week fourth quarter. Total sales reached $169mn in this additional week, and per-share earnings stood at $0.06.
Net income fell to $334mn or $1.56 a share from $378mn or $1.66 a share from the year earlier.
Kohl’s had predicted earnings per share of $1.59 to $1.74 on total sales that are lower 2 percent to 4 percent. Same-store sales were down 2 percent, matching analysts’ estimates.
In recent years, department-store operator has suffered from a shift away from national brands to increasing preference for exclusive brands such those by Daisy Fuentes and Jennifer. In an effort to boost sales, Kohl’s is now is reviving its emphasis on national brands.
On Feb. 26, Kohl’s board declared a quarterly cash dividend of $0.39 a share on its common stock, a gain of 11 percent over its previous dividend.