Kohl's sticks to annual targets after smaller-than-expected quarterly loss

Reuters

2 days ago

May 29 (Reuters) - Kohl's (KSS.N), opens new tab retained its annual forecasts after reporting better-than-expected results for the first quarter on Thursday, as the U.S. department store chain bets on its turnaround efforts against the background of tariff-induced choppy demand.
The company's shares were up 6% in premarket trading. The stock has fallen about 43% so far this year.
Kohl's, like peer Macy's (M.N), opens new tab, is looking to trim underperforming stores in its portfolio and focus on investing in outlets in prime locations to fend off the impact of intense competition from off-price and online retailers.
The company has also benefited from expanding its partnership with Sephora as demand for beauty and skincare products remains resilient.
Kohl's will have a Sephora at more than 1,100 U.S. stores by the end of the year, it said in March.
The company maintained its annual sales target of a 5% to 7% fall, and earnings per share expectation of 10 cents to 60 cents.
Analysts had expected Kohl's to cut or withdraw its forecasts as well at a time when tariffs have forced several companies in the retail space to sound warnings on consumer demand this year, and lower their financial targets.
The company, which fired its CEO earlier this month for a personal relationship with a vendor, reported a loss per share of 13 cents for the first quarter, compared with its preliminary expectations of a loss between 20 cents and 24 cents.
Analysts had expected a loss of 26 cents, according to data compiled by LSEG.
Kohl's also reported a 3.9% fall in quarterly comparable sales, compared with its preliminary expectation of a 4% to 4.3% decline shared earlier this month.