Kohl's Corp. (NYSE:KSS) Q2 2019 Earnings Conference Call - Final Transcript

Aug 20, 2019 • 09:00 am ET


Kohl's Corp. (NYSE:KSS) Q2 2019 Earnings Conference Call - Final Transcript


Loading Event

Loading Transcript


Ladies and gentlemen, thank you for standing by. Welcome to the Kohl's Second Quarter 2019 Earnings Release Conference Call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session. [Operator Instructions] As a reminder, today's conference is being recorded.

I would now like to turn the conference over to Mr. Mark Rupe, Vice President of Investor Relations of Kohl's. Please go ahead.

Mark Rupe

Thank you, John. Certain statements made on this call, including projected financial results and the Company's future initiatives are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Kohl's intends forward-looking terminology such as believes, expects, may, will, should, anticipates, plans, or similar expressions to identify forward-looking statements. Such statements are subject to certain risks and uncertainties which could cause Kohl's actual results to differ materially from those projected in such forward-looking statements.

Such risks and uncertainties include, but are not limited to, those that are described in Item 1A in Kohl's most recent Annual Report on Form 10-K and as may be supplemented from time-to-time in Kohl's other filings with the SEC, all of which are expressly incorporated herein by reference. Forward-looking statements relate to the date initially made and Kohl's undertakes no obligation to update them.

In addition, during this call, we will make reference to adjusted net income and adjusted diluted earnings per share, which are non-GAAP measures. Information necessary to reconcile these non-GAAP measures can be found in our press release, which is filed as an exhibit to our Form 8-K with the SEC and is available on the Company's Investor Relations website.

Please note that this call will be recorded. However replays of this call will not be updated. So if you're listening to a replay of this call. It is possible that the information discussed is no longer current and Kohl's undertakes no obligation to update such information.

With me today are Michelle Gass, our Chief Executive Officer and Bruce Besanko, our Chief Financial Officer. I will now turn the call over to Michelle.

Michelle Gass

Thank you, Mark. Good morning and welcome to Kohl's second quarter earnings conference call. We are pleased to report that our business strengthened as we progressed through the second quarter. Comparable sales were better than the first quarter and improved during the period, turning positive during the last six weeks of the second quarter with a 1% growth.

This positive trend has continued into August, driven by a successful start to the back-to-school season. I am happy with how the entire organization operated with a clear sense of urgency and addressing the headwinds of the early part of the year. We managed expenses efficiently, which allowed us to be more competitive and provide increased value to our customers.

A few of the key highlights of the quarter included an acceleration in digital sales growth, continued positive momentum in Active, and sequential improvement in our home business. We are also pleased that apparel sales comped positively for the