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NEW YORK, United States — Kohl's Corp. rose as much as 11 percent in early trading after posting third-quarter profit and sales that topped analysts' estimates, defying expectations for a slowdown across the department-store industry.
Profit in the quarter through October was 75 cents a share, excluding some items, the Menomonee Falls, Wisconsin-based company said Thursday in a statement. Analysts estimated 69 cents, on average. Sales rose 1.2 percent to $4.43 billion, beating analysts’ $4.4 billion average projection.
Chief Executive Officer Kevin Mansell has been adding more on-trend products and merchandise from national athletic brands like Nike, New Balance and Puma. The company also is working to improve stores, personalize its marketing and expand its online operations. Kohl’s said third-quarter sales were helped by strong demand during the back-to-school season and a surge in late October.
Shares of both Kohl’s and Macy’s Inc. slumped last week after Citigroup Inc. analyst Paul Lejuez cut his earnings estimates for the companies, saying the industry was suffering from a sales slowdown and a glut of inventory.
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Macy’s, the largest U.S. department-store company, posted third-quarter results on Wednesday that added to those concerns. The retailer’s sales trailed analysts’ estimates, and the company cut its annual profit forecast, citing slumping demand for fall apparel. Macy’s shares tumbled 14 percent on Wednesday, the most in seven years, and Kohl’s also dropped 5.4 percent.
Kohl’s rebounded in early trading Thursday, climbing as high as $48 before the market open in New York. The shares had declined 29 percent this year through Wednesday.
By Lindsey Rupp; editors: Nick Turner, Kevin Orland, Paul Jarvis.
