Kohl’s falls after same-store sales miss expectations

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It appears that department store chain Kohl’s had trouble attracting customers during the pivotal holiday shopping season, as the company’s same-store sales for the fourth quarter fell short of the average analyst projection.


The firm has failed to generate sales growth since Chief Executive Officer Tom Kingsbury was appointed to the position around one year ago. The 4.3% drop in same-store sales for the fourth quarter was an improvement over the 5.5% drop in the previous quarter, but it was still the ninth consecutive loss.

Early trading in New York saw a decline of less than 1% in the share price. By Monday’s end, the S&P Small Cap 600 Index had down 1% and Kohl’s stock had fallen 5.2% year-to-date.

In contrast to the average analyst projection of $2.67 per share, Kohl’s estimates full-year profits per share in the $2.10 to $2.70 range.

On Tuesday, the retailer announced the opening of 140 additional small-format Sephora stores in the coming months, as well as the prediction that sales at the Sephora shops it operates within its stores will surpass $2 billion by 2025. New customers have been flocking to Kohl’s stores ever since the alliance was announced in 2020, thanks in large part to Sephora.

All shops are feeling the effects of rising interest rates and inflation, but some have done a better job than others of keeping their customers loyal. While Gap Inc. and Abercrombie & Fitch Co. reported better-than-expected earnings for the fourth quarter, Victoria’s Secret & Co. struggled to increase sales in North America. This was just one of several mixed results from US apparel retailers.

Daniel Martinez

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