Kohl's Corp. (NYSE:KSS) Q3 2019 Earnings Conference Call - Final Transcript

Nov 19, 2019 • 09:00 am ET

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Kohl's Corp. (NYSE:KSS) Q3 2019 Earnings Conference Call - Final Transcript

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Presentation
Executive
Michelle Gass

The outfit bar merchandising concept continues to test well and we are evaluating the opportunity to expand the pilot beyond the 50 current stores next year.

We continue to be excited about Curated by Kohl's, our new innovative platform where we are showcasing emerging digitally native brands. We launched it last month in about 50 stores and online and are encouraged by the early results. We are partnering with Facebook to bring Curated to life through social marketing efforts and to help identify brands that are creating a following on both their Facebook and Instagram platforms. We look forward to bringing new brands onto the platform next year. We are also making progress with our store optimization strategy. During the third quarter, two new right-size locations were opened by our partners and we expect several more to open in the fourth quarter. In addition, we opened four small format stores and see the potential for more in the future. Through both our rightsizing and small format strategies, we continue to learn which will inform our future actions.

And lastly, let me remind you that we remain focused on our operational excellence initiative, which touches all parts of the business. We have been successful in saving well over our target of $250 million during the past three years and this has funded many of our growth initiatives. Our focus and efforts on this front will continue going forward.

In closing, although the quarter didn't meet our expectations, I'm pleased that the business returned to growth, a direct result of the innovation the organization is driving across the company, and we expect the impact of these initiatives to continue to build. We remain firmly committed to driving strong financial performance and shareholder value over the long-term.

I'd also like to thank our incredible associates around the country. We introduced a lot of change into our business this quarter with the ramp up of the Amazon Returns program, the launch of several significant new brands and a lot of newness across the entire business. The team continues to execute very well and we are encouraged by the momentum heading into the important holiday season. We are ready to deliver an outstanding experience to both new and loyal customers at a time when Kohl's is at it's very best.

We are happy to take your questions at this time.