By Savyata Mishra (Reuters) -Kohl’s Corp new CEO warned that a turnaround will take “some time” after the U.S. department chain forecast a bigger-than-anticipated drop in annual sales, sending its shares down 15% in early trading on Tuesday. The company, which is grappling with uneven demand, also posted a steeper-than-expected fall in holiday-quarter comparable sales. […]
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Kohl’s downbeat annual sales forecast casts shadow on turnaround, shares tumble
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By Savyata Mishra
(Reuters) -Kohl’s Corp new CEO warned that a turnaround will take “some time” after the U.S. department chain forecast a bigger-than-anticipated drop in annual sales, sending its shares down 15% in early trading on Tuesday.
The company, which is grappling with uneven demand, also posted a steeper-than-expected fall in holiday-quarter comparable sales.
Kohl’s joins larger rival Macy’s and big-box retailers Walmart and Target in tempering expectations as U.S. inflation risks rise and recession fears mount amid a chaotic implementation of President Donald Trump’s tariffs.
The uncertainty adds to Kohl’s woes as sales have been under pressure over the last three years with consumers turning to cheaper options at discount retailers including TJ Maxx parent TJX Cos.
New boss Ashley Buchanan said on a post-earnings call that the company would bring in new and affordable products and look to recapture lost demand in categories such as fine jewelry.
Buchanan has rolled out layoffs and store closures since taking charge in January as part of a revamp, while Kohl’s has sought to mitigate the impact of missteps last year that worsened a sales drag heading into the holiday season.
“The company needs to make major changes but it’s unclear if they will work since Kohl’s has been changing its merchandise for years and it has not helped,” Morningstar analyst David Swartz said.
Menomonee Falls, Wisconsin-based Kohl’s expects 2025 comparable sales to decline 4% to 6%, compared with estimates for a 0.9% drop, according to data compiled by LSEG.
Earnings per share is projected in the range of 10 cents to 60 cents, compared with estimates of $1.23.
Kohl’s fourth-quarter same-store sales fell 6.7%, compared with estimates of a 6.2% drop. It earned 95 cents per share on an adjusted basis, above estimates of 73 cents.
(Reporting by Savyata Mishra and Aamir Sohail in Bengaluru; Editing by Sriraj Kalluvila)