Kohl’s (KSS) stock is down 22% after the American department store chain reported a surprise loss for the year’s first quarter.
The Wisconsin-based company announced a loss per share of $0.24 U.S., which was much worse than a profit of $0.04 U.S. expected among analysts.
A year earlier, Kohl’s reported a profit of $0.13 U.S. per share.
Revenue in the January through March quarter totaled $3.18 billion U.S., which was below Wall Street forecasts of $3.34 billion U.S. Sales were down 5.3% from a year ago.
The results were blamed on a decline in consumer spending, particularly on discretionary items, amid inflation and high interest rates.
Looking ahead, Kohl’s lowered its 2024 guidance, saying it now expects full-year sales to decline 2% to 4%. Analysts had a sales gain of 0.2% penciled in for the company.
Management said they expect full-year earnings per share of $1.25 U.S. to $1.85 U.S., well below the $2.34 U.S. a share that was expected on Wall Street.
Despite the disappointing print and guidance, management at Kohl’s said they are seeing positive trends in the women’s sales category and growth in the retailer’s Sephora partnership.
Prior to today (May 30), Kohl’s stock had risen 43% over the last 12 months and was trading at $27.25 U.S. per share.
