Fellow Fool Rich Smith recently wondered how long Kohl's
Second-quarter sales increased 8.7%, as same-store sales improved a respectable 1.3%, which management said stemmed from a 2.5% increase in average transaction value and a 1.2% decrease in transactions per store, as sales moderated toward the end of its quarter. Overall though, in similar fashion to a revived J.C. Penney
For instance, the company is increasingly working with wedding gown designer Vera Wang, is expanding its Chaps line and relationship with Ralph Lauren
Though seasonal merchandise is struggling somewhat, the company still saw fit to bump up the lower end of its full-year earnings guidance to $3.77-$3.87 per share. That puts the forward P/E at a reasonable 16 times, given the long-term track record of double-digit sales, earnings, and cash flow growth.
With only 834 stores throughout the country, Kohl's has plenty of real estate to expand into, and plans 112 total new stores for fiscal 2007. The near-term trend could be getting more difficult, but the long-term outlook continues to favor it as it grows its off-mall locations. In any case, Kohl's overall trends are a welcome change from the dour results from the likes of Wal-Mart
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Fool contributor Ryan Fuhrmann has no financial interest in any company mentioned. Feel free to email him with feedback or to discuss any companies mentioned further. The Fool has an ironclad disclosure policy.