Kohl's Corp. (KSS - Get Report) managed to eke out a decent quarter despite the evolving retail apocalypse, but investors are still balking at the year-over-year sales decline.

On Thursday, Aug. 10, the department store chain reported earnings for the quarter ending July 29. Sales of $4.144 billion were down 0.9% year-over-year, while net income of $208 billion bested last year's, which was $140 billion. Earnings per share were at  $1.24, up 2% from the same quarter last year. Analysts surveyed by FactSet expected Kohl's to earn $1.19 per share on sales of $4.124 billion.

CEO Kevin Mansell touted accelerating traffic momentum and cost-savings in a statement. "While traffic still remained slightly negative in the quarter, an improvement in traffic was the driver of the improved performance in sales," he said on a call with analysts, adding that the sales improvement came from both new customer visits and existing customers increasing their visits. 

The Active business was Kohl's most successful, increasing in the mid-teens, driven by the introduction of Under Armour Inc. (UAA - Get Report) as well as strong performance by existing brands Nike Inc. (NKE - Get Report) and Adidas AG (ADDYY)  , Mansell said. Skechers USA Inc. (SKX - Get Report) had the strongest improvement at Kohl's compared to the first quarter, he added. 

Shares were down 8.2% to $38.48 in Thursday morning trading. 

Kohl's added four stores on net year over year, ending the quarter with 1,154 stores in 49 states. Kohl's also operates 12 FILA Outlets and four Off/Aisle clearance centers.

On Tuesday, Aug. 8, the company's board of directors announced a quarterly cash dividend of its common stock of 55 cents per share, payable on Sept. 6.

It's a retail-heavy earnings period, with Macys Inc. (M - Get Report) and Nordstrom Inc. (JWN - Get Report) also set to report Thursday, followed by J.C. Penney Inc. (JCP - Get Report) on Friday.

Capitalizing on the spate of retail store closures and bankruptcies remains a priority for Kohl's, Mansell said on the analyst call. "We're activating a very targeted effort to capture more than our fair share of sales from competitor stores that are closing in our trade areas," he said. "The marketing supporting that plan started at the end of July and will continue through the fall and holiday season. We do believe there's a significant sales opportunity for us to capture in several hundred stores, and early results on that are promising."

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