Earnings roundup: Walmart, Kohl’s
November 15, 2013
New York--Walmart Stores Inc. and off-price retailer Kohl’s Corp. released their third quarter earnings Thursday, with same-store sales down for both as the retail environment remains competitive.
Details of both company’s financial statements are below.
Walmart Stores Inc. reported a 0.3 percent decline in same-store sales (excluding fuel) in the U.S. in the third quarter. Total sales reached $67.69 billion, up 2 percent from $66.11 billion in the prior-year period.
At Sam’s Club, same-store sales (without fuel) were up 1 percent during the period while total sales also were up 1 percent to $14.08 billion.
Operating income for Walmart’s U.S. stores was up 6 percent to $5.12 billion, while operating income for Sam’s Club increased by more than 9 percent to $474 million.
“Our most important priority is growing top-line sales, including comp sales,” said Mike Duke, Walmart Stores Inc. president and CEO. “The retail environment, both in stores and online, remains competitive. Walmart has aggressive plans to help our customers enjoy the holiday season, and there is no doubt that we plan to win for our customers and shareholders throughout the holidays.”
Bill Simon, Walmart U.S. president and CEO, gave no reason for the company’s tepid performance this quarter, only noting that they are now focusing on the holidays.
“The team has developed our best holiday plan ever. We are committed to being the number one retail destination,” Simon said. “We’re making sure our shelves are well stocked with the most popular toys, and we’re guaranteeing low prices all season in the store through the Christmas Ad Match Program.”
For the 14-week period ending Jan. 31, 2014, Walmart expects U.S. same-store sales to be relatively flat.
Same-store sales decreased by nearly 2 percent from the prior-year period for Kohl’s Corp. in the third quarter ended Nov. 2.
Total sales were also down for the retailer, decreasing by 1 percent year-over-year to $4.44 billion.
Net income declined nearly 18 percent, from $215 million in the third quarter 2012 to $177 million in the third quarter 2013.
Kohl’s ended the quarter with 1,158 stores in 49 states, compared to 1,146 stores at the same time last year. The company opened three new stores during the third quarter, and has remodeled a total of 30 stores in 2013.
“As we enter the holiday season, we believe we are well positioned from a merchandise content and inventory perspective to gain market share,” said Kevin Mansell, chairman, president and CEO. “We have increased our marketing spending and improved its impact and reach in order to drive higher traffic to our stores and online. Our customer will find the perfect gift for everyone on her shopping list at Kohl’s and will be excited by the value she receives in both our only-at-Kohl’s and national brands.”
For the fourth quarter ending Feb. 1, 2014, Kohl’s estimates that same-store sales will be flat or decline by up to 2 percent, while total sales are expected to decline between 2 and 4 percent.