NEW YORK (TheStreet) -- Kohl's (KSS) shares are up 3.3% to $56.92 on Thursday after the company reporting second quarter net income of $232 million, or $1.13 per diluted share, that was ahead of analysts expectations by 6 cents.
The company increased its profit, despite reporting a 1.1% drop in net sales and a 1.3% drop in comparable same store sales, as it was able to cut operating costs in its selling, general and administrative divisions by 2% during the period.
The retailer reported strong comparable store sales in July that partially offset sluggish results in the previous two months.
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TheStreet Ratings team rates KOHL'S CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate KOHL'S CORP (KSS) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, expanding profit margins, increase in stock price during the past year and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income."