Kohls Corporation (KSS)
October 06, 2011 12:00 am ET
Vicki Shamion - Senior Vice President of Public Relations
Thank you for calling the Kohl's sales information line. Information provided on this call is related to the press release issued on October 6 for the September fiscal month. Statements made on this call, including projected financial results, are forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected in such forward-looking statements. Such risks and uncertainties include those that are described in Item 1A in Kohl's' Annual Report on Form 10-K/A and as may be supplemented from time to time in Kohl's other filings with the SEC, all of which are expressly incorporated herein by reference.
Also please note that replays of this call will be available for 36 hours but this recording will not be updated. So if you are listening after October 6, it is possible that the information discussed is no longer current.
Total sales for the 5-week September fiscal month were $1.6 billion, up 5.8% over September 2010. On a comparable store basis, sales increased 4.1% for the month. Year-to-date, total sales have increased 3.3% and comp sales have increased 1.5%.
From a regional perspective, the Southeast region outperformed the company average. The Midwest, Mid-Atlantic and Northeast regions were also consistent with the company average, while the South Central was below the company average with a low single-digit comp increase. The West region was slightly negative.
Children's and Men's outperformed the company average for the month. Children's reported a high single-digit comp sales increase on low double-digit increase in both boys and girls. In Men's, the active and dress shirts and ties categories also reported low double-digit increases. Men's basics, casual sportswear and young men's also outperformed the company average.
The Women's business was consistent with the company average. The new Jennifer Lopez line was a significant driver of the mid-teen increase in the contemporary sportswear category.
Accessories and Home reported low single-digit comp sales increases. Accessories was led by fashion jewelry with a low double-digit increase.
Home was again led by small electrics with a mid-teen comp, while bedding and bath were better than the company.
Footwear was once again the most challenging line of business. Women's shoes, however, ran a comparable sales increase in the high teens, and children's shoes were better than the company.
We remain comfortable with the level and content of our inventory, and we continue to expect to end the quarter up low single digits in inventory per store versus last year.
We have completed our projection of the effect of lease accounting changes on the remainder of fiscal 2011. The changes are expected to decrease diluted earnings per share by approximately $0.03 in both the third and fourth quarters and by approximately $0.11 for the year.
As a result, we now expect our third quarter earnings to be $0.73 to $0.79 per diluted share compared to our previous guidance of $0.76 to $0.82 per diluted share.
Fiscal 2011 earnings are now expected to be $4.34 to $4.49 per diluted share versus our previous guidance of $4.45 to $4.60 per diluted share.
We will report our October sales on Thursday, November 3. Thank you.