Kohl’s withdraws quarterly and yearly guidance as Coronavirus continues to disrupt business

As Coronavirus continues to hit business operations across the globe, Kohl’s (NYSE:KSS) withdrew its financial guidance for earnings in the current quarter on Thursday. The American department store retail chain also canceled its earnings outlook for the fiscal year.

Kohl’s
announcement on Thursday also said that the retailer is to close all of its
nationwide stores effective immediately until April 1^st to
contribute to minimizing the fast transmission of the flu-like virus.

Kohl’s
Has Completely Drawn Its Unsecured Credit Facility

According
to the retailer, the health emergency has pushed Kohl’s into fully drawing
its unsecured credit facility worth £860 million to improve its cash standing
and enhance financial flexibility that will help the company survive through
the Coronavirus driven uncertainty.

The
company also highlighted that its current strategy revolves around minimizing
expenses. It is also committed to building up its inventory. Further measures
from Kohl’s included suspending its share buyback program temporarily while the
retailer also launched an assessment of its current dividend model.

In
its statement on Thursday, Kohl’s said:

“Kohl’s
remains committed to paying a divided over the long-term and to the extent it
makes a near-term change in its program due to the COVID-19 impact, it would
seek to resume its approach following stabilization in the environment.”

Kohl’s,
however, is not alone in its battle against the fast-spreading virus. A wide
range of businesses including entire malls have temporarily shut doors in the
United States and are resorting to similar measures to combat the Coronavirus
pandemic.

Nordstrom, L Brands, And Abercrombie & Fitch Also Withdrew Financial Guidance

Nordstrom,
L Brands, and Abercrombie
& Fitch have also withdrawn their financial guidance recently blaming
the sharply rising uncertainty.

Kohl’s
was reported volatile in the stock market on Thursday. During the regular
session, the stock rallied up and printed a 10% growth to trade at £14.75 per
share. Following the aforementioned announcement, however, the retailer lost 3%
in after-hours trading on Thursday.

Kohl’s
closed the last week at £13.48 per share on Friday that translates to more than
66% decline in 2020 so far. Its performance in 2019 wasn’t reported any better
either with an annual loss of just over 20%. Kohl’s opened at around £56.65 per
share in January 2019 and closed the year significantly lower at £43.78 in
December. Kohl’s is currently valued at £2.11 billion with a price to earnings
ratio of 3.62.