By Juveria Tabassum (Reuters) -Kohl’s retained its annual forecasts after reporting better-than-expected results for the first quarter on Thursday, as the U.S. department store chain bets on its turnaround efforts against the background of tariff-induced choppy demand. The company, which fired its CEO earlier this month for a personal relationship with a vendor, reported a […]
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Kohl’s sticks to annual targets amid tariffs, turbulence at top
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By Juveria Tabassum
(Reuters) -Kohl’s retained its annual forecasts after reporting better-than-expected results for the first quarter on Thursday, as the U.S. department store chain bets on its turnaround efforts against the background of tariff-induced choppy demand.
The company, which fired its CEO earlier this month for a personal relationship with a vendor, reported a loss per share of 13 cents for the first quarter, compared with estimates of a loss of 26 cents, according to data compiled by LSEG.
Analysts had expected Kohl’s to cut or withdraw its forecasts at a time when tariffs have forced several retailers to lower their financial targets and warn on consumer demand.
“Kohl’s has a long road to turning the business around but it’s gratifying to see that the CEO turmoil didn’t drag down this quarter,” said Kim Forest, chief investment officer at Bokeh Capital Partners.
The company’s shares were up about 5% in premarket trading. The stock has fallen about 43% so far this year.
Kohl’s, like larger rival Macy’s, is closing underperforming stores to focus on investing in outlets at prime locations amid intense competition from off-price and online retailers.
The department store chain’s partnership with Sephora has remained a bright spot as demand for higher-end beauty and skincare products remains resilient.
Kohl’s plans to have a Sephora outlet at all its U.S. stores by the end of the year. Sephora sales at Kohl’s were more than $1.8 billion in 2024, ensuring that accessories were the only category with revenue growth in the year.
The company maintained its 2025 sales forecast of a 5% to 7% fall, and earnings per share expectation of 10 cents to 60 cents.
In contrast, Macy’s cut its annual profit forecast a day earlier, but maintained its sales expectations.
The company’s net sales for the three-months ended May 3 were $3.05 billion, topping estimates of $3.02 billion.
(Reporting by Juveria Tabassum in Bengaluru; Editing by Sriraj Kalluvila)