Shoppers walk in front of a Kohl’s store in Mount Kisco, New York.
Scott Mlyn | CNBC
Kohl’s shares plummeted more than 20% in premarket trading Thursday after the company 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, according to 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 loss of $27 million, or a loss of 24 cents per share, compared to a year-ago profit of $14 million, or 13 cents per share.
Net sales decreased 5.3% to $3.18 billion compared to the year prior, with comparable sales down 4.4%.
The company also lowered its 2024 guidance. It now expects full-year net sales to decline 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 in the range of $1.25 to $1.85 – far lower than the $2.34 per share that was expected, according to LSEG.
“We recognize we have more work to do in areas of our business,” CEO Tom Kingsbury said in a release. “We are approaching our financial outlook for the year more conservatively given the first quarter underperformance and the ongoing uncertainty in the consumer environment.”
The chief executive noted positive trends in the women’s category and continued strong growth in the retailer’s Sephora shop-in-shop partnership. Kohl’s announced in March it would add similar in-store outposts of Babies R Us to about 200 locations.
“We continue to have high conviction in our strategy and believe 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.