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Reuters
Published
Aug 13, 2015
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Kohl's same-store sales miss on delayed back-to-school shopping

By
Reuters
Published
Aug 13, 2015

Department store operator Kohl's Corp reported lower than expected quarterly same-store sales as consumers delayed back-to-school shopping due to a shift in tax holidays to August.



U.S. states offer a three-day sales tax holiday on back-to-school purchases. The tax holiday has shifted to August from July in most states this year.

Same-store sales rose only 0.1% for the quarter ended Aug. 1, much lower than the 1.7% rise expected by analysts polled by research firm Consensus Metrix.

"Our sales results were below our plan as the shift of sales in tax-free states from July into August was larger than anticipated," Kohl's Chief Executive Kevin Mansell said in a statement.

Kohl's largely caters to low- to middle-income customers for whom tax benefits are important for discretionary spending.

Lower spending on apparel and accessories and a general slowdown in consumer spending could also hurt Kohl's second quarter, analysts had warned.

Macy's Inc said on Wednesday that consumers were spending more on restaurants, recreational services, healthcare and electronics rather than on general merchandise, apparel and furnishings.

The operator of Macy's and the upscale Bloomingdale's chains reported second-quarter profit and sales below estimates and cut its sales forecast, hurt by heavy discounts and a strong dollar that curbed spending by foreign tourists.

Kohl's net income fell 44% to $130 million, in the quarter ended Aug. 1. The company incurred a loss of about $170 million due to debt refinancing.

Net sales rose 0.6 percent to $4.27 billion, but was below the average analyst estimate of $4.31 billion.



 

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