Kohl’s Q1 sales down 5.3 percent, net loss widens

First quarter net sales at Kohl’s decreased 5.3 percent to 3.2 billion dollars and comparable sales decreased 4.4 percent.

The company said that regular price sales increased 2.4 percent with clearance impacting overall comp by more than 600 basis points.

Commenting on the first quarter update, Tom Kingsbury, Kohl’s chief executive officer, said in a statement: “Our first quarter results did not meet our expectations and are not reflective of the direction we are heading with our strategic initiatives. Lower clearance sales versus last year represented a more than 600 basis point drag on comparable sales.”

Operating income for the quarter declined to 43 million dollars, gross margin of 39.5 percent increased 48 basis points and net loss widened to 27 million dollars or negative 24 cents per diluted share.

For the full year 2024, the company expects net sales to decrease between 2 percent to 4 percent, and comparable sales to decrease in the range to 1 to 3 percent. Operating margin is forecasted in the range of 3 percent to 3.5 percent and diluted EPS in the range of 1.25 dollars to 1.85 dollars.

On May 15, 2024, Kohl’s board of directors declared a quarterly cash dividend of 50 cents per share payable June 26, 2024 to shareholders of record at the close of business on June 12, 2024.