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BRIEF-Kohl's says launched profit improvement project "to take significant expense out"
February 23, 2017 / 3:28 PM / 5 months ago

BRIEF-Kohl's says launched profit improvement project "to take significant expense out"

2 Min Read

Feb 23 (Reuters) - Kohls Corp

* On conf call- Q4 average transaction value increased 3.8 percent

* On conf call- accessories weakest catgeory in q4

* On conf call- Q4 transactions per store declined 6 percent

* On conf call- $350 million of $700 million full-year capex for it spending

* On conf call- national brands were 54 percent of total sales in 2016

* Localization efforts now impact about 85% of assortment, they are having a positive impact on sales as well as reducing inventory levels

* Mobile devices account for 50 percent of our online traffic

* Have launched a profit improvement project "to take significant expense out of our company", expect some impact this year, majority impact will be in 2018 and 2019.

* Believe that overall we have retained about a third of sales from stores closed last year

* Expect more significant improvement in gorss margin in Q1 with remainder of the year with very modest improvement

* CEO- "we will achieve a rationalization of square footage over time, not necessarily fewer stores but probably less square footage"

* CFO- "500 of our 1,150 some stores are going to be run like a smaller store... We are looking for opportunities to bring in other retailers to take that square footage that we are able to carve out to drive some additional traffic "

* CEO- "we've really dramatically reduced inventories this year so our clearance levels and fall transitional inventories are way down compared to last year"

* CEO- Under Armour could have an impact of as much as 100 basis points in the overall company comp for the year Further company coverage:

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