Kohls 3Q16 Earnings Call Notes

Kohl’s (KSS) Q3 2016 Results
Kevin Mansell – Kohl’s Corp.

Saw progressive improvement throughout October

“I’m happy to say we ended the quarter strongly in October and saw progressive sequential improvement throughout the month as we moved some of our key marketing to better coincide with colder weather. The month of October ended basically flat to last year, which is encouraging as we enter the holiday season.”

Usually certainty is a good thing when there is an outcome of something like the election

“I mean, I don’t think either Wes or I have a good sense of that. The cyclical nature of our sales in the third quarter, which was really basically really strong back-to-school, really poor September, and then very solid October were probably mostly driven by demand based on weather. And yeah, I think it’s positive that it improved, but overall, I think our experience over a long period of time is things that are distracting like the election, once there’s an outcome, certainty is a good thing. So from a positive perspective, having certainty on that is probably a good thing looking into the holiday.”

wrt Trump we can only manage what we can manage

“I mean, overall, I think, Oliver, you can only – as business people, we can only manage what we can manage. So, there are plenty of things, though, that we can manage better. Inventory is a big aspect, but that’s driven by receipt flow. And I think we’re managing it much more effectively than we did in the past, and it’s giving us a lot more flexibility. So if, for instance, you feel there’s uncertainty due to continued fallover from the election, I think more flexibility in a business plan is a good thing.”

Wesley S. McDonald – Kohl’s Corp.