Kohl’s Corp. (KSS) has signed a deal with ECOtality Inc. (ECTY) to install electric vehicle charging stations at Kohl’s department stores all over the nation.
Ecotality, which is a leader in clean electric transportation and storage technologies, will install stations at 14 Kohl’s stores through the EV Project in California, Oregon, Washington, Arizona and Tennessee.
Further, each Kohl’s store will provide atleast two and upto four parking spaces and will allow electric vehicles’ drivers to charge their vehicles free of cost.
Although Kohl’s has not disclosed the stores, which will have the charge stations, but the vehicle charging stations will form a part of ECOtality’s $230 million EV project, which will be financed partly through a federal stimulus grant, and will continue through 2012-end.
Kohl’s delivered better-than-expected third quarter 2011 operating earnings of 80 cents per share in November 2011, beating the Zacks Consensus Estimate by a penny. The earnings also surpassed the prior-year quarter earnings by 40%.
At the end of the quarter, Kohl’s added 31 stores to reach a total of 1,127 stores in 49 states, compared with 1,089 stores in the prior-year quarter. The company completed the remodel of 15 stores during the third quarter, bringing the total number of stores remodeled in 2011 to 100.
For fiscal 2011, the company has further increased its earnings guidance from $4.34 – $4.49 per share to $4.41 – $4.52 per share.
Kohl’s has had a consistent merchandise mix over the past three years. In addition, the company’s pricing strategy and overall profitability culture is focused on maintaining a low-cost structure.
A strong balance sheet coupled with strong cash balances and attractive dividend yields makes the stock attractive. However, some mid-priced retailers are struggling to combat rising input costs. Kohl’s also faces increased competition from Target Corp. (TGT), which is a concern.
Kohl’s holds a Zacks #3 Rank, which translates into a short-term Hold rating. Currently, we maintain a long-term Neutral recommendation on the stock.
