Analyst: Kohl's Maneuvering Through Recession Well

NEW YORK (AP) — Kohl's Corp. is maneuvering through the recession fairly well, an analyst said Thursday, but the department store operator's June sales results may lag due to unfavorable weather conditions.

Daniel Binder of Jefferies & Co. said in a client note that the Menomonee Falls, Wis.-based company has managed to keep pace during the economic downturn by rolling out new brands, cutting costs, tightening inventory and creating effective promotions.

While Kohl's said last month that its first-quarter profit dropped 11 percent, the results still managed to top analysts' estimates and the retailer said it expected to keep gaining market share from competitors

Kohl's reported good May sales results, with same-store sales beating Wall Street's expectations, but June's soggy weather likely will pressure this month's performance, Binder explained. Kohl's also feels it had a greater benefit from tax rebates in the year-ago period, the analyst added.

Binder maintained a "Buy" rating and $50 price target.

Kohl's stock fell 85 cents to $43.41 in afternoon trading.