Kohl’s Corp., showing some progress in stabilizing the business, reported that its bottom line stayed flat for the first quarter while sales volume continued to slide.
Net income for the quarter ended April 29 was $14 million, or $0.13 per share. That compared to net income of $14 million, or $0.11 per share in the prior year.
Net sales decreased 3.3 percent to $3.36 billion, from $3.47 billion. Comparable sales decreased 4.3 percent.
“Our first-quarter results were in line with our expectations and represented a first step as we work to drive sales and earnings performance over the long term,” Tom Kingsbury, Kohl’s chief executive officer, said Wednesday in a statement. “We delivered margin expansion, as well as a 6 percent reduction in inventory. In addition, our stores business achieved productivity gains and Sephora at Kohl’s continued its sales momentum.”
Kingsbury added that the company is “making progress against each of our key 2023 priorities, enhancing our customer experience, simplifying our value strategies, managing inventory and expenses with discipline and strengthening our balance sheet. I would like to thank the entire Kohl’s team for driving against these priorities with a clear focus and strong determination. While there is still work to be done and the macroeconomic environment remains challenging, we are affirming our 2023 guidance and continue to have conviction in Kohl’s’ longer-term opportunity.”
Watch on FN
Apparently, investors were pleased with the first-quarter report card. In pre-market trading, Kohl’s stock price jumped 12.6 percent, or $2.43, to $21.70.
In other financial results, Kohl’s reported that its gross margin increased 67 basis points, and that inventory declined 6 percent.
The Menomonee Falls, Wisconsin-based retailer affirmed its full-year outlook, expecting a sales decrease of 2 to 4 percent, which includes the impact of the 53rd week which is worth about 1 percent year-over-year. Sales in 2022 came to $17.2 billion.
Operating margin is seen at about 4 percent. Diluted earnings per share are In the range of $2.10 to $2.70, excluding any non-recurring charges.
Capital expenditures are seen in the range of $600 million to $650 million, including expansion of its Sephora partnership and store refresh activity.
This story was reported by WWD and originally appeared on WWD.com.
