BUSINESS
11/10/2011 09:09 EST | Updated 01/10/2012 05:12 EST

Kohl's net income rises 20 per cent in 3rd quarter on cost cuts, demand for exclusive brands

MENOMONEE FALLS, Wis. - Department store operator Kohl's Corp. said Thursday its third-quarter profit rose 20 per cent, helped by cost cuts and demand for exclusive brands such as lines by Jennifer Lopez and Marc Anthony.

The company raised its full-year outlook. Its shares jumped more than 3 per cent in premarket dealings.

Kohl's and other department stores face challenges to get its middle-income shoppers to spend during the holidays. But demand for its exclusive brands remained strong.

The Menomonee Falls, Wis.-based company said net income rose to $211 million, or 80 cents per share. That's up from $176 million or 57 cents per share a year ago and matched analyst expectations, according to FactSet.

Revenue rose 4 per cent to $4.38 billion from $4.22 billion last year, also roughly matching analysts' expectations.

Revenue in stores open at least one year rose 2.1 per cent. The measure is considered a key gauge of a retailer's performance.

In the fourth-quarter, Kohl's expects net income of $1.93 to $2.04 per share on a revenue rise of 4 per cent to 6 per cent, implying revenue of $6.28 billion to $6.4 billion.

Analysts expect earnings of $1.96 per share on revenue of $6.3 billion.

For the full year, Kohl's now expects net income of $4.34 to $4.49 per share. Analysts expect $4.46 per share.

Shares rose $1.71, or 3.2 per cent, to $56 in premarket trading. The stock is nearly flat for the year.