By - Team Kalkine Media
- Kohl’s Corporation (NYSE: KSS) posted net sales of US$5.47 billion in the first quarter of 2022.
- KSS’s revenue of US$3.71 billion is down from the previous year’s US$3.88 billion.
- The retailer cuts its full-year per-share profits for adjusted earnings to between US$6.45 and US$6.85.
Kohl’s Corporation (NYSE: KSS) on Thursday trimmed its forecast for fiscal 2022 after reporting first-quarter earnings hit by rising inflation. Kohl’s is another retailer to blame weak quarterly earnings on inflation after retail giants Walmart Inc. and Target Corp.
Kohl’s net sales tanked 5.2% YoY to US$5.47 billion in the quarter. The total revenue of US$3.71 billion is also down from the previous year’s US$3.88 billion in the same quarter.
KSS earned 11 cents per share on an adjusted basis, but it was much below the estimates.
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The company said that its sales figures might ascend in the second half of 2022 due to its collaboration with Sephora, the LVMH-owned beauty products retailer.
“We continue to expect our business to improve as the year progresses,” said Michelle Gass, Kohl’s CEO. “We benefit from the rollout of 400 additional Sephora stores, enhanced loyalty rewards, and further investment in our stores,” added Gass.
Sephora is a French global retailer of personal care and beauty products headquartered in Paris, France. Sephora USA, Inc. and Sephora San Francisco are its subsidiaries.
Kohl’s also saw its shares rising 2% to US$44 after it announced its ongoing discussions with several parties for a potential sale.
The retailer cuts its full-year per-share profits for adjusted earnings to between US$6.45 and US$6.85. Earlier it was from US$7.00 to US$7.50.
KSS has also lowered its annual net sales. It is now expecting it to rise by 1% compared to the previous forecast of a 2% to 3% increase.
Kohl’s (KSS) stock was up 4.36% to US$45.01 at 3:58 pm ET after the results.
On May 10, 2022, Kohl’s announced a quarterly cash dividend of US$0.50 a share. The dividend will be paid next month to shareholders of record at the close of business on June 8, 2022.