Kohl’s Corp. will need a big fourth quarter to meet its goal of becoming a $1 billion in 2011, but the chain retailer’s CEO says the company is up for the task.
For the third quarter ended Oct. 29, Kohl’s, No. 31 in the Internet Retailer Top 500, reported:
- Web sales increased 28.2% to $200 million from $156 million in the third quarter of 2010.
- Total sales increased year over year 3.8% to $4.37 billion from $4.21 billion.
- Comparable-store sales grew 2.1%.
- Net income increased 19.9% to $211 million from $176 million in the third quarter of 2010.
Internet Retailer calculates the web accounted for 4.6% of total sales compared with 3.7% in the prior year.
For the first three quarters, Kohl’s also reported:
- Web sales increased 36% to $555 million from $408 million in the first three quarters of 2010.
- Total sales increased year over year 3.5% to $12.78 billion from $12.35 billion.
- Comparable-store sales grew 1.7%.
- Net income increased 13.6% to $711 million from $626 million in the first three quarters of 2010.
Internet Retailer calculates the web accounted for 4.3% of total sales compared with 3.3% in the prior year.
To reach $1 billion in web sales in 2011, Kohl’s needs to generate e-commerce revenue of about $445 million, a goal CEO Kevin Mansell says is obtainable. “Our e-commerce sales year-to-date have surpassed $500 million and remain on target to reach our goal of $1 billion,” Mansell told Wall Street analysts on the company’s recent third quarter earnings call.
Historically, the fourth quarter is the biggest of the year for Kohl’s. In Q4 of 2010, Kohl’s grew web sales 52.4% to $308.6 million from $202.5 million in the fourth quarter of 2009. “We continue to be excited about our e-commerce performance as we remain on track to achieve $1 billion in e-commerce sales in 2011,” Mansell told analysts. “In order to achieve that goal, our third e-commerce fulfillment center in Maryland is online to support the holiday peak season. We're also very happy with our performance in Texas this quarter as we added that state to our marketing intensification initiatives.”