In recent news, Kohl’s has joined the list of American department stores to have posted lower than expected sales in 2019’s holiday season. As per an official announcement, the company saw a sales decline of 0.2% in the past two months. The company cited falling demand for its core business unit of women’s apparel. Following the drop in sales, Kohl’s reduced its forecast for the full-year.
Kohl’s had previously anticipated $4.75 to $4.95 of earnings per share (EPS) for fiscal 2019. In a press release on Wednesday, the department store highlighted that it is now expecting the EPS to remain capped at $4.75. The aforementioned range for earnings per share was previously curtailed from a much higher $5.15 to $5.45 for fiscal 2019 in November when the company had announced its quarterly performance results.
Kohl’s Lost 8% In The Stock Market On Wednesday
The $7.7 billion company lost around 8% on Wednesday after the announcement of poor than expected sales in the 2019’s holiday season. The stock is currently exchanging hands at around $46 per share that marks an almost 28% decline for Kohl’s in the past 12 months.
CEO Michelle Gass commented on the news and expressed confidence in the company’s ability to align its earnings for fiscal 2019 with the recently revised guidance. The segments that performed reasonably well in 2019’s holiday season, she added, included that of footwear, beauty, children’s, and men’s units. Fixing the decline in women’s business is a priority for the department store in the upcoming months, as per the CEO.
According to the analysts, the store is expected to note a 0.4% growth in its quarterly same-store sales. The fourth quarter also includes the last year’s holiday season. Despite the growth, however, the analysts added, Kohl’s is likely to still remain in the “underperformed” category for 2019’s holiday season.
Shoppers Preferred Online Shopping In 2019’s Holiday Season
Data from Mastercard Spending Pulse shows the American retailers including Nordstrom, Macy’s and J.C Penney to have seen a 1.8% decline (combined) in sales in November and December. The rising trend of online shopping in the holiday season contributed to the majority of the buyers opting for other major retailers like Walmart, Target, and Amazon, which have a more established e-commerce unit.
Kohl’s has recently tied up with Amazon. The company expected the move to push the traffic and subsequently the sales for the department store higher. So far, however, the benefits have not been reaped.
An in-depth insight into the company’s earnings will be revealed on March 3rd as Kohl’s announces its next quarterly performance results.