Kohl’s Corp. said Wednesday that it earned almost the same amount in this year’s third quarter as last year’s, though its revenue rose, because its costs rose faster.
The department store operator said after the market closed that it earned $194 million, or 63 cents per share, in the period ended Oct. 30, about even with the $193 million, or 63 cents per share, a year earlier.
Revenue rose 4.2 percent, to $4.22 billion.
Analysts expected the company to do slightly better, earning 63 cents per share on revenue of $4.3 billion.
Kohl’s shares rose 74 cents, to $53, in after-hours trading Wednesday.
The company was slated to release its results before the market opened Thursday and still plans to hold a conference call with investors on Thursday.
Kohl’s said quarterly revenue at stores open at least a year, considered a key measure for retailers because it excludes stores that opened or closed during the year, rose 1.8 percent.
The company, based in Menomonee Falls, Wis., maintained its fourth-quarter forecast for earnings of $1.51 to $1.59 per share. Analysts on average expect $1.57 per share for the period, which ends in January, according to Thomson Reuters.
Kohl’s said it expects its fourth-quarter revenue to grow between 4.5 percent and 6.5 percent and revenue at stores open at least a year to rise 2 to 4 percent. The company expects fourth-quarter selling, general and administrative expenses to increase between 3 to 4 percent.
The company said it plans to enter into an agreement in the next several weeks to buy back $1 billion of its common stock on an accelerated basis. The company has $1.9 billion left in a $2.5 billion share repurchase program announced in September 2007.
Earlier this month the company said its third-quarter results would come in at the low end of its guidance due to errors in its accounting for leased properties.
To correct the errors, it says it expects to book a charge of $25 million, or 5 cents per share, to $75 million, or 15 cents per share. The company said the errors occurred over a number of years but will not affect any previously reported period.
