Shoppers walk in front of a Kohl’s store in Mount Kisco, New York.
Scott Mlyn | CNBC
Kolya Shares fell more than 20% in premarket trading Thursday after the company reported a surprise per-share loss that fell well short of Wall Street’s expectations for a slim profit.
Here’s how Kohl’s got the job done. fiscal first quarter compared to what Wall Street expected, according to a survey of LSEG analysts:
- Loss per share: 24 cents vs. expected profit of 4 cents
- Income: $3.18 billion versus expected $3.34 billion.
Kohl’s reported a net loss of $27 million, or a loss of 24 cents per share, compared with a year-ago profit of $14 million, or 13 cents per share.
Net sales decreased 5.3% to $3.18 billion compared to the prior year, with comparable sales down 4.4%.
The company also lowered its 2024 forecast. The company now expects full-year net sales to decline 2% to 4%. Wall Street analysts surveyed by LSEG expected 2024 sales forecast to be 0.2%.
Kohl’s expects full-year diluted earnings per share to be between $1.25 and $1.85, well below expectations of $2.34 per share, according to LSEG.
“We recognize that we have much work to do in various areas of our business,” CEO Tom Kingsbury said in the release. “We are taking a more conservative approach to our full-year financial guidance given the weak first quarter and continued uncertainty in the consumer environment.”
The CEO noted positive trends in the women’s category and the continued strong growth of retailer Sephora’s store-within-a-store partnership. In March, Kohl’s announced it would add similar Babies R Us stores to about 200 locations.
“We continue to feel strongly about our strategy and believe that our key growth initiatives, including Sephora, home decor, gifts, momentum and our upcoming partnership with Babies ‘R’ Us, will drive a more meaningful path forward,” said He.
This story is developing. Please stay tuned for updates.