Wisconsin-based department store operator Kohl's Corp. said Tuesday it plans to open 566 new stores over the next five years, a 67% increase. The company is opening 80 stores Wednesday and another 15 in November, which will result in the creation of 14,000 new jobs, Kohl's said. The company currently operates 834 stores. "For the past two years, we have exceeded our financial objectives and believe we are well positioned to deliver on our long-term strategic growth plan," said chairman and CEO Larry Montgomery. The company is expecting same-store sales to rise 2-4% each year over the five-year period, with total sales growth at 9-11% on a compounded annual rate. EPS are forecast to rise 15-17% on that basis from 2006's level of $3.31. Kohl's recently started selling a high-end clothing and home goods line by Vera Wang as well as Food Network-branded kitchen items. The retailer's same-store sales dropped 0.6% for August and were flat in July, missing analyst expectations for both months. The company plans to boost its women's and men's clothing offerings and adjust its marketing campaign. Kohl's shares closed up 1.8% at $58.63.
Sources: MarketWatch, Reuters, AP
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Earnings call transcript: Kohl's Corporation Q2 2007
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