NEW YORK – Kohl’s Corp.’s first-quarter net income climbed 6 percent as its move to control expenses like inventory and strength in its store-label brands made up for a more modest revenue increase overall.
The company also raised its full-year earnings outlook Thursday, partly on optimism it will be able to pass on higher costs for raw materials like cotton.
Lingering cool temperatures in the Northeast and Midwest chilled sales of seasonal items like clothing. But the department store retailer said it expects clothing sales to improve as the weather warms up.
“We have strengthened our marketing for the second quarter and believe that we will see some pent-up demand for seasonal businesses,” said Kevin Mansell, chairman, president and CEO said on a conference call with investors. “Our customer is very focused on buying close to need. And so when she doesn’t have need, which she really didn’t have in March and April, she delays buying.”
The chain is also counting on its new exclusive brands from entertainers Jennifer Lopez and Marc Anthony to draw customers. Kohl’s says they’re the first celebrity couple to simultaneously design collections for one retailer. The lines will launch this fall.
Kohl’s net income rose to $211 million, or 73
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