Kohl's Rises on Same Store Sales Gain
By Cindy Christ

Shares in Kohl's Corp. gained as much as 6 percent Thursday after the Wisconsin-based department store chain reported same-store sales advanced 9.8 percent in May.

While other U.S. retailers posted mediocre or declining comparable store figures, Kohl's jump was second only to Talbots Inc., which reported a whopping same-store gain of more than 29 percent for the month.

In a statement, Kohl's said total sales jumped 37 percent over last May. Since late January, Kohl's sales have risen more than 35 percent from the year-ago period.

"All merchandise areas performed well contributing to our strong 9.8 percent comparable store sales increase. In addition, our new stores continue to exceed our expectations," said Larry Montgomery, Kohl's CEO and vice chairman.

The company said May revenues from all stores totaled $406.4 million in 2000 versus $296.7 million a year ago.

Year-to-date revenues hit $1.6 billion compared to $1.21 billion last year. Sales for 2000 reflect revenues from 298 stores compared to 231 in 1999.

Kohl's said it plans to open eight additional stores in August and 13 in October.

Shares in Kohl's (KSS) finished up $2.75, or 5.3 percent, at $54.50.

Separately, a basket of U.S. retailers announced mixed same- store results for the month of May on Thursday. In addition to Kohl's, those reporting included Best Buy (BBY), with same- store sales up 9.5 percent over last year, Wal-Mart (WMT) up 7.4 percent, Sears (S) up 3.5 percent, Target (TGT) up 1.5 percent, Ann Taylor (ANN) up 3.1 percent, TJX Corp (TJX) up 3 percent, Kmart (KM) up 0.9 percent, Abercrombie & Fitch (ANF) down 14 percent, and Gap (GPS) down 2 percent.

Shares in Pacific Sunware (PSUN) plunged 23 percent to $12.44 after the teen clothier reported a 0.05 percent comparable store gain and warned EPS might fall short of estimates in the second quarter.

Analysts said some retailers are beginning to suffer from the series of Fed rate hikes as consumers turn more cautious about spending due to higher interest rates on credit cards.