QuoteKohl's Corp. said Thursday that it plans to close 18 underperforming stores in 2016 after reporting a nearly 20 percent drop in fourth-quarter profits. The company also said sales for fiscal 2016 are expected to be flat with 2015, with the potential for a decline in sales of about 0.5 percent. Analysts polled by Thomson Reuters expect 1 percent sales growth in 2016.
Menomonee Falls-based Kohl's (NYSE: KSS) reported net income for the fiscal fourth quarter ended Jan. 30 of $296 million, or $1.58 per share, a 19.8 percent decline compared with $369 million, or $1.83 per share, for the comparable period the year before. Analysts' earnings consensus for the quarter was $1.55 per share. Net sales increased to $6.39 billion from $6.34 billion in the comparable period the year before.
Kohl's chairman, president and CEO Kevin Mansell said comparable store sales, which increased by 0.4 percent in the quarter, was well below company expectations. He said strong sales leading up to Christmas were largely offset by substantial softness in early November and January when demand for cold-weather products was especially slow.
Kohl's said it will close 18 stores in 2016 as part of efforts to optimize its store portfolio. The locations will be announced by the end of March. The move is expected to result in annual savings totaling $55 million. Kohl's now has 1,164 stores in 49 states. Kohl's has 5 stores in the Jacksonville area.
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