In its second-largest acquisition, Amazon buys the company for $970 million.
The web and e-commerce outperformed stores for Kohl’s in the first quarter. Web sales rose 29.5% while overall revenue grew 1.4% and comparable store sales dropped 6.7%.
The web and e-commerce easily outperformed stores for Kohl’s Corp. in the first quarter.
In the quarter ended May 3, 2008, Kohl’s, No. 63 in the Internet Retailer Top 500 Guide, grew e-commerce sales by 29.5% to $63.6 million from $49.1 million in the prior year.
In comparison, total revenue grew by only 1.4% while comparable store sales declined by 6.7%. For the quarter, Kohl’s reported net income of $153 million on total sales of $3.62 billion, compared with net income of $209 million on sales of $3.57 billion in the first quarter of 2007.
Overall the web accounted for 2% of sales for Kohl’s in Q1, but generated 29% of all growth. “We remain conservative in our sales expectations for the balance of the year and will manage our business accordingly,” says Kohl’s CEO Larry Montgomery. “We will continue to invest for the long term as we add new stores and remodel existing stores as well as invest in people and technology for market share gain.”
Kohl’s also continues to expand its range of celebrity-endorsed products on Kohls.com and in stores. In May, Kohl’s announced a marketing and merchandising arrangement with celebrity chef Bobby Flay. The new Bobby Flay collection includes a selection of cookware, dinnerware, kitchen gadgets, utensils, cutlery, kitchen textiles and barbecue tools.