Kohls 3Q14 Earnings Call Notes

posted in: Notes | 0

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. Full transcripts can be found at Seeking Alpha

Sales down

“From a sales perspective, comp sales decreased 1.8% for the quarter. Transactions per store were down 2.6% while average transaction value was up 0.8%. Within the average transaction value, average unit retail was up 2.6% while units per transaction were down 1.8%. Total sales for the quarter were $4.4 billion, a decrease of 1.6% from the third quarter last year”

Strong back to school offset a very weak October

“Geographically, results were generally consistent across all regions for the quarter. The Midwest was the strongest region. The strong back-to-school season offset a very weak October. The South Central was the most difficult region for the second consecutive quarter.”

The weather was bad in October, but has gotten more favorable in November

” I mean, the weather was poor. In October, you heard a lot of our competitors, along with ourselves, talk about that. The weather has gotten much better in the first 2 weeks of November and that helps when you sell apparel.”

transactions per store are how we measure traffic

“on the transactions per store, we don’t really — I mean, we have traffic counters in about 150 of our stores, but not enough to give a true sample. So the transactions per store is really what we call traffic”

Business has improved quite a bit in the first two weeks of Nov

“Other than just saying that the business has improved quite a bit in the first 2 weeks, I don’t really want to get into the color of transactions per store. Cold weather, obviously, drives people to the store. And when they come, they buy apparel”