Kohl’s profits increase despite stagnant job market
November 19, 2011 by James
Despite so many US companies suffering substantial losses, Kohl’s Corporation, headquartered in Menomonee Falls, Wis., reported an increase of 20 percent in its third quarter profits and raised its full-year outlook, according to The Wall Street Journal.
Encouraging more spend from shoppers on a middle-range income has been a problem for Kohl’s and many other department stores, but it seems as though shoppers are still willing to pay premium prices on luxuries priced affordably.
Kohl’s success in a declining market, which the company attributes to increased marketing and promotions, which can include services such as flyer and brochure printing, has competing department stores struggling to keep pace. According to The Wall Street Journal, customers were also tempted into Kohl’s by the Jennifer Lopez and Marc Anthony range, which came to the store in the middle of September.
Kevin Mansell, the president, chairman and chief executive officer of Kohl’s, shared his opinions about the department store’s success in an interview with the Associated Press:
“It shows what we have learned over time,” he said. “If we have something exciting and well-priced, people are open to spend.”
Perhaps Mansell is right; after all, Kohl’s net income has risen to $211 million dollars, which is 80 cents per share. This is an increase of 23 cents per share from last year. Kohl’s expects its revenue to rise from 4 to 6 percent in the fourth quarter.
With people tightening their wallets, Kohl’s proves that sound business strategy and increased advertising can still reel in the shoppers.