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BRIEF-Kohl's CEO- Relatively bullish on Q4 based on trend of business coming into the quarter
November 9, 2017 / 2:52 PM / a month ago

BRIEF-Kohl's CEO- Relatively bullish on Q4 based on trend of business coming into the quarter

Nov 9 (Reuters) - Kohls

* CFO- positive impact of less clearance markdowns in Q3 more than offset by higher shipping costs in online business and higher reserves

* CFO- approximately $8 million of SG&A increase in Q3 was attributable to the hurricanes harvey and irma

* On conf call- Q3 regular priced sales were up 1% while clearance sales were down 7%

* On conf call- Q3 sales in our core women’s business was negative but saw improvement in private brands

* CEO- “a portion of improvement in sales trend is attributable to our targeted efforts to capture share from competitive store closures”

* CEO- expect a very strong holiday performance in both active apparel and footwear categories

* CEO- online generated demand sales grew 15% for Q3, continue to grow the percentage of online orders that are fulfilled by stores

* Will pilot a further evolution of loyalty program in Q2 next year with about 100 stores, company-wide rollout intended for fy2019

* CEO says both Amazon tests launched successfully in mid-october, declines to share further details

* Overall in the fourth quarter, have increased our marketing

* Inventory per store at the end of Q3 was down low single digits and is expected to be down mid-single digits at the end of the year

* The 3 hurricanes affected about a little over 100 of our stores, those stores remain closed for between 2 and 7 days

* Digital marketing is now our largest marketing spend, we’re delivering more specific offers based on customers’ past preferences

* Inventories are leaner and more relevant because receipts are coming closer to sales; as a result, we have improved merchandise margin

* CEO- “when we closed stores in markets, omnichannel sales are negatively impacted”

* CEO- “ we are relatively bullish on the fourth quarter based on the trend of the business coming into the quarter” Further company coverage: ( Bangalore.newsroom@thomsonreuters.com )

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