No Turn On Red

It’s quarterly earning season again, time to take a look back at how the retailers did in the previous three months and learn a few details about where they are going in the next three months.

First up, the numbers from Kohl’s:

Kohl’s Corporation second quarter earnings per diluted share increased 27.8 percent to $0.69 per diluted share from $0.54 per diluted share in last year’s period. Net income increased 24.1 percent to $232.4 million from $187.2 million. Net sales for the quarter increased 14.0 percent to $3.3 billion from $2.9 billion a year ago while comparable store sales increased 5.5 percent.

For the six months ended July 29, 2006, net income increased 28.1 percent to $399.6 million or $1.17 per diluted share, compared to $311.9 million or $0.90 per diluted share for the six months ended July 30, 2005. Net sales increased 15.0 percent to $6.5 billion from $5.6 billion a year ago. Comparable store sales increased 6.2 percent for the same period.

(The full press release is here.)

Another good quarter from Kohl’s.

Some interesting notes from the conference call:

The company saw the strongest comps in Home. This is due to new lifestyle classification/merchandising and new private/exclusive label merchandise (noting positive response to Candies and apt. 9 Home). They noted a slightly higher penetration of private label merchandise, in all merchandise categories, but noted sales were strong on the back of it’s exclusive to Kohl’s brands.

They see the most growth in updated and contemporary brands, noting that response is great due to improved merchandise presentation and expect to show off some further new and bright ideas with it’s new stores opening in October.

Missy brand launches of Chaps, West End, AB Studio, and Stamp 10 have been very strong with Stamp 10 expanding into an additional 110 doors in Missy and Chaps expanding into the Girl’s department this Fall.

The key idea that was repeated over and over again was newness and excitement in the store experience. They say that their customers desire it and they are continually looking for ways to better this experience.

Look for an analyst conference at a new store in Tampa on October 4, which will allow them to show off their newest ideas and innovation in merchandise and merchandise presentation. Should be a very interesting date to watch.

Seems that Kohl’s kept on rolling this quarter. Very good for them. Stock is up over 3% in after hours trading.

Amazing to me that both Kohl’s and JC Penney can apparently go after the same market segment but both have had two great quarters in a row to start off Fiscal 2006. Can their trends continue into the second half of the year, with fears of terrorism, higher energy prices, and a soft housing market? I think both retailers have a few tricks still tucked away in their sleeves before we get to Christmas.

More coverage from Marketwatch.com, TheStreet.com, and MSN.com.

See also: Retail roundup - Q1 results, Kohl’s.

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