Reported 4 months ago
Kohl's department store chain experienced a significant drop in its shares, plummeting up to 26% in early trading, after announcing a surprise quarterly loss and revising down its annual sales and profit forecasts. The weaker consumer demand for apparel and footwear, influenced by economic factors like high interest rates and inflation, has impacted Kohl's middle-income customers the most, while sales reduction from lower clearance items added to the decline in comparable sales. The company now projects a decrease in net sales between 2% and 4% for fiscal 2024 and anticipates earnings per share to be in the range of $1.25 to $1.85, contrasting with its previous expectations, leading to a per-share loss of 24 cents in the first quarter, a stark difference from the anticipated 4 cents profit per share by analysts. Kohl's shares were valued at $20.38, witnessing its worst performance yet, while other retail peers like Macy's and Nordstrom Inc. also faced stock decreases.
Source: YAHOO