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CEO Kevin Mansell says the chain can do $1.0 billion in web sales in 2011.
Kohl’s Corp. put up another quarter of healthy growth online, but the retailer will need a strong second half of 2011 to reach its stated goal of becoming a $1 billion annual web retailer.
For the second quarter ended July 30, Kohl’s, No. 31 in the Internet Retailer Top 500 Guide, reported
- E-commerce sales increased year-over-year 36.0% to $171.0 million from $125.7 million.
- Total sales increased 3.4% to $4.24 billion from $4.10 billion in the second quarter of 2010.
- Comparable-store sales increased 1.9%.
- Net income increased 16.5% to $303.0 million from $260.0 million in the second quarter of 2010.
Internet Retailer calculates the web accounted for 4.0% of total sales compared with 3.1% in the second quarter of 2010.
Kohl’s expects web sales to meet—and even surpass—$1 billion in 2011, but the retailer will need to generate about $642 million over the rest of the year to hit that goal, based on an estimate by Internet Retailer. Kohl’s CEO Kevin Mansell says becoming a $1 billion online retailer is doable. “Our e-commerce business continues to report significant sales increases and is on plan to reach our $1 billion business goal,” Mansell told Wall Street analysts on the company’s recent second quarter earnings call.
For the first six months of the year:
- E-commerce sales increased year-over-year 39.3% to $358.0 million from $257.0 million in the first two quarters of 2010.
- Total sales increased 3.3% to $8.41 billion from $8.14 billion.
- Comparable-store sales increased 1.6%.
- Net income increased 12.0% to $514.0 million from $459.0 million.
Internet Retailer calculates the web accounted for 4.3% of total sales compared with 3.2% in the second quarter of 2010.