As expected, the US trading group Kohl’s Corporation had to accept a slight decline in sales in the first quarter of the 2023/24 financial year. Thanks to successful austerity measures, however, the profit remained constant. This emerges from an interim report that the company published on Wednesday evening.
In the three months ended April 29, group sales were $3.57 billion. This was 3.9 percent below the level of the same quarter of the previous year. Retail sales fell by 4.3 percent on a like-for-like basis.
Operating income reached $98 million, up 19.5 percent year-on-year, as the retailer increased gross margin and reduced operating expenses. As in the first quarter of the previous year, reported net profit was 14 million US dollars (13 million euros).
CEO Tom Kingsbury said in a statement that the current figures were “in line with expectations”. The company has also taken a “first step” in its efforts to increase sales and profitability over the long term.
The retailer left its annual forecast unchanged. For 2023/24, the management continues to expect a decline 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.