Shoppers walk in front of a Kohl’s store in Mount Kisco, Latest York.
Scott Mlyn | CNBC
Kohl’s shares plummeted greater than 20% in premarket trading Thursday after the corporate posted a surprise loss per share, coming in well below Wall Street’s expectations for a slight profit.
Here’s how Kohl’s did in its fiscal first quarter compared with what Wall Street was expecting, in accordance with a survey of analysts by LSEG:
- Loss per share: 24 cents vs. a profit of 4 cents expected
- Revenue: $3.18 billion vs. $3.34 billion expected
Kohl’s reported a net lack of $27 million, or a lack of 24 cents per share, in comparison with a year-ago profit of $14 million, or 13 cents per share.
Net sales decreased 5.3% to $3.18 billion in comparison with the 12 months prior, with comparable sales down 4.4%.
The corporate also lowered its 2024 guidance. It now expects full-year net sales to say no between 2% and 4%. Wall Street analysts polled by LSEG had been expecting 2024 sales guidance of a 0.2% gain.
Kohl’s expects full-year diluted earnings per share within the range of $1.25 to $1.85 – far lower than the $2.34 per share that was expected, in accordance with LSEG.
“We recognize we have now more work to do in areas of our business,” CEO Tom Kingsbury said in a release. “We’re approaching our financial outlook for the 12 months more conservatively given the primary quarter underperformance and the continuing uncertainty in the buyer environment.”
The chief executive noted positive trends in the ladies’s category and continued strong growth within the retailer’s Sephora shop-in-shop partnership. Kohl’s announced in March it might add similar in-store outposts of Babies R Us to about 200 locations.
“We proceed to have high conviction in our strategy and consider that our key growth initiatives, including Sephora, home decor, gifting, impulse, and our upcoming partnership with Babies ‘R’ Us, will contribute more meaningfully going forward,” he said.
This story is developing. Please check back for updates.
