In the second quarter of the 2022/23 financial year, the US trading group Kohl’s Corporation felt the consequences of the deteriorating general conditions. On Thursday, the company had to announce significant declines in sales and earnings. Because the retailer also significantly lowered its annual forecasts, the share price immediately fell by more than eight percent.
For the second quarter ended July 30, consolidated revenue was $4.09 billion. It was 8.1 percent below the level of the same period of the previous year. Earnings were further impacted by a lower gross margin and higher costs. Operating profit fell by 53 percent to 266 million US dollars. The net result even shrank by 63 percent to 143 million US dollars (141 million euros).
“The results in the second quarter were shaped by a weakening macroeconomic environment, high inflation and more cautious consumer behavior, which particularly affected our middle-income customers,” said CEO Michelle Gass in a statement and acknowledged that the current Year “more difficult than expected”.
Amid the ongoing adversity, the retailer revised its full-year guidance significantly downwards. He now expects that the proceeds will fall short of the previous year’s level by five to six percent. So far, management had expected sales to be at or slightly above the previous year’s level. The target range for adjusted earnings per share was lowered to $2.80-$3.20 from $6.45-$6.85.