Kohl's Corp (NYSE:KSS) reported a disappointing first quarter, with the retailer's earnings and sales falling short of Wall Street estimates.
As a result, KSS plunged 18% in premarket Thursday trading.
For the first quarter, Kohl's posted a net loss of $27 million, or -$0.24 per diluted share, which was significantly below the analysts' consensus of $0.04 per share. Revenue for the quarter also missed expectations, coming in at $3.38 billion against the projected $3.4 billion.
Compared to the same quarter last year, net sales decreased by 5.3%, and comparable sales were down 4.4%.
CEO Tom Kingsbury expressed disappointment in the results, which he said did not meet the company's expectations and were not reflective of the strategic direction.
Kingsbury highlighted the positive aspects, such as the growth in regular price sales and strong performance in certain categories, but acknowledged the significant impact of lower clearance sales on the overall comparable sales figure.
Looking ahead, Kohl's provided a conservative outlook for the full year 2024, with expectations of a net sales decrease between 2% and 4%, and comparable sales potentially declining between 1% and 3%.
The company also anticipates an operating margin ranging from 3.0% to 3.5% and adjusted EPS between $1.25 and $1.85, which is below the analysts' consensus of $2.33. The midpoint of the EPS guidance range, at $1.55, is significantly lower than the consensus estimate.
Kohl's reaffirmed its commitment to returning capital to shareholders through dividends and reducing long-term debt. The Board of Directors declared a quarterly cash dividend of $0.50 per share, payable in June, and the company announced the redemption of $113 million of its high-interest notes due in 2025.
