Kohl's downbeat annual sales forecast sends shares tumbling 17%

Reuters

Tue, Mar 11, 2025, 4:04 AM 1 min read

(Reuters) -Kohl's Corp forecast a bigger-than-anticipated driblet successful yearly income and expects nett beneath Wall Street estimates connected Tuesday, arsenic the U.S. section store concatenation grapples with uneven request amid a turnaround nether its caller CEO.

Shares of the apparel retailer tumbled 17% successful premarket trading arsenic it besides posted a steeper-than-expected autumn successful holiday-quarter comparable sales.

New brag Ashley Buchanan has rolled retired layoffs and store closures since taking the helm successful January arsenic helium looks to revive the company.

Kohl's joins larger rival Macy's and big-box retailers Walmart and Target successful tempering expectations arsenic U.S. ostentation risks emergence and recession fears equine amid a chaotic implementation of President Donald Trump's tariffs.

The uncertainty adds to Kohl's woes arsenic income person been nether unit implicit the past 3 years arsenic consumers turned to cheaper options astatine discount retailers including TJ Maxx genitor TJX Cos.

The institution has besides suffered from its ain missteps including its anterior exit from good jewelry to prioritize opening Sephora shops.

Sharp inventory simplification successful private-label covering besides impacted income successful women's and kids apparel successful 2024 arsenic value-focused shoppers chose rival retailers.

The Menomonee Falls, Wisconsin-based institution expects 2025 comparable income to diminution 4% to 6%, compared with estimates for a 0.9% drop, according to information compiled by LSEG.

Earnings per stock is projected successful the scope of 10 cents to 60 cents, compared to estimates of $1.23.

Its fourth-quarter same-store income fell 6.7%, compared with estimates of a 6.2% drop.

(Reporting by Savyata Mishra and Aamir Sohail successful Bengaluru; Editing by Sriraj Kalluvila)