The US retailer Kohl’s Corporation ended the 2022/23 financial year with a decline in sales and in the red. Because the results published on Wednesday missed market expectations, the company’s share price immediately fell by more than ten percent.
For the fiscal year ended Jan. 29, Kohl’s retail sales were $17.2 billion, down 7.1 percent from the prior year. Like-for-like sales fell by 6.6 percent.
In addition to the drop in revenue, a lower gross margin and higher SG&A helped operating income slip 85.4 percent to $246 million. The bottom line was a net loss of US$19 million (€18 million) after a surplus of US$938 million in the previous fiscal year.
In the fourth quarter, which also included the important Christmas business, the company disappointed the analysts. Revenue fell 7.2 percent year-on-year to $5.8 billion. Because extensive discounts and higher product costs burdened the result, the group had to accept a net loss of 273 million US dollars. Kohl’s had closed the final quarter of the previous year with a net profit of 299 million US dollars.
For the current 2023/24 financial year, the management is now expecting a drop in sales of two to four percent. Adjusted diluted earnings per share are expected to be in the range of $2.10 to $2.70.