Kohl's shares slump on disappointing outlook
By Abigail Townsend
Date: Tuesday 11 Mar 2025
(Sharecast News) - Shares in Kohl's tumbled on Tuesday, after the US retailer posted a slide in fourth-quarter sales and warned of another difficult year ahead.
The department store said sales in the three months to 1 February - which includes the crucial holiday period - fell 9.4% to $5.18bn, or by 6.7% on a like-for-like basis.
Net income tumbled to $48m from $106m a year earlier, while adjusted earnings per diluted share fell to $0.95 from $1.67.
Both revenues and earnings were marginally ahead of forecasts, with Wall Street expecting $5.15bn in sales and EPS of $0.73.
However, the retailer adopted a highly cautious view of the current year. It expects annual net sales to continue falling, by between 5% and 7%, while diluted EPS is anticipated to come in between just $0.10 and $0.60.
Over the year to February 2025, net sales fell 7% to $15.39bn, while adjusted net income fell to $1.50 per diluted share from $2.85.
As at 1215 GMT, the stock had lost 17% in pre-market trading.
New chief executive Ashley Buchanan, who took over in January, said: "Kohl's has a tremendous opportunity to build on our strengths, address key areas of opportunity and better serve our customers every day.
"We have identified key areas of focus and are taking action in 2025 to reposition Kohl's future success."
Kohl's has been hit by increasingly stiff competition in recent years, as cash-strapped US consumers sought cheaper rivals.
Shoppers were also unimpressed by moves to attract younger customers, such as introducing Sephora cosmetics and scaling back its fine jewellery offering.
In addition, there are also now growing concerns about the chaotic imposition of tariffs on the US economy. President Donald Trump has imposed a flurry of duties on countries around the world since taking office, stoking inflationary fears.
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