Kohl’s Predicts Weak Profit for 2013
Kohl’s Corp (NYSE:KSS) posted a profit lower than Wall Street expectations, Reuters reported on Thursday. Efforts to move merchandise through the holiday season worked, but to the detriment of its quarterly profits.
In a statement, the company said to expect marginal profits in 2013 as well, as the company anticipates pumping more funding into advertising and overhauling its IT systems, Reuters said. Kohl’s, which caters to price-sensitive middle-class shoppers, said it expects same-store sales to be flat to 2 percent this year, following a modest 0.3 percent gain last year.
Kohl’s Chief Executive Kevin Mansell said the company will invest in IT infrastructure in 2013 to help it with price and inventory management, with a focus on promotional and permanent markdown management. This decision was made after inventory difficulties made stocking shelves an issue throughout 2012…