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…

The company often found itself too lean on merchandise and missed out on sales, or had too much and had to slash prices, which dented profits. The new system would address these issues, and make the inventory purchase and stocking operation more streamlined and financially efficient.

Around the industry, Macy’s (NYSE:M) is predicting a 3.5 percent gain this year, although Mansell acknowledged that Kohl’s tends to cater to a lower income demographic than Macy’s. Kohl’s real competition is J.C. Penney Co. (NYSE:JCP), who reported a 31.7 percent same-store sales decline for the holiday quarter.

Kohl’s said net income fell to $378 million, or $1.66 per share in the fourth quarter ended February 2nd, from $455 million, or $1.82 per share, a year earlier. The latest earnings per share result was $0.03 better than analysts’ targets, according to Thomson Reuters.

Don’t Miss: Retailers Versus the Payroll Tax Round 2: Expectations and Confidence.