Small-appliance retailer Kohl's Corp. reported a drop in quarterly profit, as it slashed prices in order to clear out merchandise at its namesake mid-priced department stores.
The Menomonee Falls, WI, U.S.-based company posted net income of U.S. $246.8 million, or $0.72 per share, for the fourth quarter ended Jan. 31, compared with $279 million, or $0.81, a year earlier.
Analysts, on average, had been expecting it to earn $0.69 per share, according to Reuters Research. But that estimate was far below what the company had initially forecast. Kohl's lowered its forecast to $0.68 to $0.70 per share from its previous projection of $0.89 to $0.95 per share.
Quarterly sales rose 11.9 percent to $3.56 billion, while same-store sales, a key measure of retail performance, fell 2.1 percent.
Kohl's, which opened 85 new stores in fiscal year 2004, said it plans to open 95 stores this year and another 95 next year.
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