Kohl’s warns of lower sales, profit

Department store operator Kohl's on Thursday reported a sharply lower fourth-quarter profit and warned that sales and earnings are likely to fall this year.

Kohl's, with stores in Cedar Rapids, Coralville and Waterloo, posted fourth-quarter net income of $296 million, or $1.58 per share, down 20 percent from $369 million in the fourth quarter of 2014. Sales rose 0.8 percent to $6.4 billion in the quarter that ended Jan. 31 from $6.3 billion in the same period a year earlier.

For all of 2015, earnings fell 22 percent to $673 million, or $3.46 per share, from $867 million, or $4.24 per share, in 2014. Sales edged up 1 percent to $19.2 billion in 2015 from $19 billion in 2014.

The Menomonee Falls, Wis., retailer said it probably will not meet its 2017 target of $21 billion in sales because of a weak economy and reduced consumer spending.

Kevin Mansell, Kohl's chairman, president and CEO, said fourth-quarter sales were negatively affected by lower demand for cold-weather goods in early November and January due to warmer-than-usual weather.

Mansell said Kohl's will close 18 underperforming stores, representing less than 1 percent of total sales. The specific locations will be announced by the end of March.