In its second-largest acquisition, Amazon buys the company for $970 million.
E-commerce sales account for 6.6% of total sales in the third quarter.
Kohl’s Corp. is paying more attention to e-commerce and it’s paying off in sales growth, especially in the just-completed third quarter
For the third quarter ended Oct. 27, Kohl’s, No. 28 in the 2012 Internet Retailer Top 500 guide, reported:
- Online sales of $295 million, up by 50% from about $197 million in Q3 2011.
- Total sales were $4.49 billion, an increase of 2.7% from about $4.37 billion in the prior year.
- Comparable-store sales increased 1.1%.
- Net income was $215 million, down by 1.9% from $211 million in the same quarter a year ago.
Web sales accounted for 6.6% of total sales compared with 4.5% in the third quarter of 2011.
E-commerce growth was fueled by an improved conversion rate and higher web traffic, Wesley McDonald, chief financial officer, told analysts on the company’s earnings call last week. “We’ve invested a lot of money in digital marketing this year to drive traffic to the site,” he said. “We just installed guided navigation recently, and we expect that to be a benefit for the holiday season. And we’ve also increased the number of SKUs we have available online.”
McDonald did not disclose the e-commerce investment figure or the number of SKUs added online.
Kohl’s also is testing shipping online orders from stores on a very limited basis, McDonald said. The service could be in place for the 2013 holiday season, he said.
For the first nine months:
- Web sales were $782 million, up by 41% from $555 million in the first nine months of 2011.
- Total sales were $12.93 billion, an increase of 1.2% from $12.78 billion.
- Comparable-store sales decreased 0.5%.
- Net income was $609 million, a 14.3% decline from $711 million a year ago.
Web sales accounted for 6.0% of total sales compared with 4.3% in the first nine months of 2011.