Customers leave a Kohl’s store on November 12, 2015 in San Rafael, California.
Justin Sullivan | Getty Images News | Getty Images
Kohl’s on Thursday said final and fully-financed bids from potential buyers are expected in the coming weeks, as the retailer faces heightened pressure from activists to sell.
Chief Executive Officer Michelle Gass said Kohl’s has been “pleased with the number of parties who recognize the value of our business and plan.”
But the company’s stock slid 5% in premarket trading after the retailer posted a massive earnings miss for its fiscal first quarter and slashed its profit and sales outlook for the year. Gass, in a press release, said that 2022 started out below her expectations.
“Sales considerably weakened in April as we encountered macro headwinds related to lapping last year’s stimulus and an inflationary consumer environment,” Gass said.
Kohl’s joins a growing list of major retailers, including Walmart and Target, that have seen logistics and staffing expenses eat into profits amid 40-year-high inflation. These companies have also started to see American consumers adjust spending behavior as they face higher prices on everything from milk to workout clothes.
Kohl’s now expects fiscal 2022 adjusted earnings per share of $6.45 to $6.85, compared with its prior forecast of $7.00 to $7.50.
Net sales are forecast to be flat to up 1% from year-ago levels, compared with prior guidance of up 2% to 3%.
Here’s how Kohl’s did in the three-month period ended April 30, compared with what Wall Street was anticipating, according to a survey of analysts by Refinitiv:
- Earnings per share: 11 cents vs. 70 cents expected
- Revenue: $3.72 billion vs. $3.68 billion expected
Kohl’s for its fiscal first quarter reported net income of $14 million, or 11 cents per share, compared with $14 million, or 9 cents per share, a year earlier. That was short of analysts’ expectations for 70 cents a share.
Sales fell to $3.72 billion from $3.89 billion a year earlier though still beat analysts’ estimates for revenue of $3.68 billion.
Kohl’s said comparable sales fell 5.2%. Analysts had been looking for a 0.5% increase.
Find the full press release from Kohl’s here.
This story is developing. Please check back for updates.
