Latest news with #MichaelBender
Yahoo
3 days ago
- Business
- Yahoo
KSS Q1 Earnings Call: Kohl's Outlines Turnaround Priorities Amid Challenging Retail Backdrop
Department store chain Kohl's (NYSE:KSS) missed Wall Street's revenue expectations in Q1 CY2025, with sales falling 4.4% year on year to $3.23 billion. Its GAAP loss of $0.13 per share increased from -$0.24 in the same quarter last year. Is now the time to buy KSS? Find out in our full research report (it's free). Revenue: $3.23 billion (4.4% year-on-year decline) Adjusted Operating Income: $60 million vs analyst estimates of $43.42 million (1.9% margin, 38.2% beat) EPS (GAAP) guidance for the full year is $0.35 at the midpoint, missing analyst estimates by 47.4% Operating Margin: 1.9%, in line with the same quarter last year Same-Store Sales fell 3.9% year on year, in line with the same quarter last year Market Capitalization: $901.7 million Kohl's first quarter results reflected the early stages of a turnaround effort, with management emphasizing renewed focus on product assortment and customer needs. Interim CEO Michael Bender, newly appointed after a period of leadership change, stressed the importance of rebalancing the merchandise mix and restoring categories popular with core customers. CFO Jill Timm highlighted solid performance in reintroduced fine jewelry and petite apparel, attributing gains to reversing past decisions that alienated loyal shoppers. Management was candid that progress would be gradual, noting the turnaround is ongoing and that much of the required work still lies ahead. Timm acknowledged, 'This is a turnaround and will continue to take time, and much of the work remains ahead of us.' Looking forward, Kohl's is focused on driving improved value for customers while navigating ongoing pressures, including tariffs and cautious consumer spending. Management discussed initiatives to enhance proprietary brand penetration and expand coupon eligibility, aiming to regain lost wallet share from core shoppers. Bender emphasized the company's intention to 'align the business to meet the needs of our customers,' especially as many consumers face budget constraints. Timm outlined efforts to mitigate tariff impacts through diversified sourcing and cost management, stating, 'We believe we can achieve our financial guidance for the year…as we continue to work to reduce our exposure to high tariff countries.' The company expects the benefit of new assortments and promotional actions to build gradually through the year. Management traced first quarter performance to changes in merchandise strategy, efforts to restore lost customer segments, and continued operational discipline. Several key business updates shaped the quarter's outcome. Assortment rebalance underway: Kohl's re-emphasized core categories such as fine jewelry and petites after previously deprioritizing them, resulting in double-digit growth in those segments. Management attributed this to listening to long-time customers and rectifying past assortment decisions. Proprietary brands regaining traction: With renewed investment in value-oriented private label brands like Tek Gear and Lauren Conrad, Kohl's began to reverse underperformance in these lines. Timm noted proprietary brands improved 400 basis points quarter-over-quarter, but acknowledged they remain below company averages and require further attention. Sephora rollout completed: The chain finished adding Sephora shops to all locations, with beauty segment net sales up 6%. While growth rates have moderated as the rollout matures, management sees ongoing market share gains in beauty, especially in fragrance and hair categories. Digital channel lags but improving: Online sales declined again, driven by weakness in home and among Kohl's card customers. However, management pointed to early improvements as more brands became coupon-eligible online, with expectations of further gains as promotional changes expand. Operational cost control: SG&A expenses fell 5% year over year, reflecting disciplined store and marketing expenditures. Management credited ongoing efficiency efforts and a shift in credit servicing to an external party for helping offset sales pressures. Kohl's forward guidance is shaped by efforts to rebuild customer loyalty, manage external cost headwinds, and deliver value-focused merchandising. Customer wallet share recovery: Management is prioritizing regaining spend from core Kohl's card customers who reduced their shopping frequency and basket size after prior assortment changes. The company is expanding coupon eligibility and reintroducing favored proprietary brands to address this, aiming to increase both store and digital engagement. Tariff mitigation and sourcing: The company is actively shifting product sourcing to a wider range of countries to limit exposure to tariffs, working closely with suppliers to manage price elasticity and inventory flow. Management believes most tariff-related cost pressures can be offset through these sourcing strategies and promotional adjustments. Margin discipline amid investment: While investing in store layout improvements, digital upgrades, and fulfillment expansion, management plans to tightly control inventory and general expenses. They expect margin benefits as proprietary and impulse categories expand, but acknowledged ongoing gross margin pressure from value-focused pricing and cautious consumer behavior. In the coming quarters, the StockStory team will monitor (1) the effectiveness of efforts to win back core Kohl's card customers and drive proprietary brand growth, (2) the impact of new coupon eligibility and promotional strategies on both in-store and digital channels, and (3) progress in offsetting tariff pressures through sourcing and inventory management. Store layout changes and the performance of new product categories will also be critical indicators of turnaround momentum. Kohl's currently trades at a forward P/E ratio of 30.6×. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Fibre2Fashion
3 days ago
- Business
- Fibre2Fashion
American retailer Kohl's Q1 sees progress despite 4.1% sales decline
American omnichannel retailer Kohl's, in the first quarter (Q1) of fiscal 2025 (FY25) ended May 3, has reported net sales of $3 billion, marking a year-over-year (YoY) decline of 4.1 per cent, with comparable sales down 3.9 per cent. The gross margin improved by 37 basis points (bps) to 39.9 per cent of net sales, and selling, general and administrative (SG&A) expenses fell by 5.2 per cent to $1.2 billion, representing 36 per cent of total revenue—down 32 bps YoY. Kohl's has reported net sales of $3 billion in Q1 FY25, down 4.1 per cent YoY, with comparable sales down 3.9 per cent. Operating income rose to $60 million, while net loss narrowed to $15 million. Gross margin improved to 39.9 per cent and SG&A expenses declined. CEO Bender expressed optimism as he assumed leadership. FY25 outlook includes a 5â€'7 per cent sales decline and capex of $400â€'$425 million. The operating income rose to $60 million, compared to $43 million in the prior-year period, with the operating margin improving by 58 bps to 1.9 per cent. The company reported a net loss of $15 million, or $0.13 per diluted share, compared to a net loss of $27 million, or $0.24 per diluted share, in Q1 FY24. Inventory levels stood at $3.1 billion, a 2 per cent increase from the previous year, while operating cash flow recorded an outflow of $92 million, Kohl's said in a press statement. 'Our first quarter performance was ahead of our expectations and the actions we are taking are starting to make progress with early signs of a positive impact. Our team is focused and motivated to deliver great products, great value, and a great shopping experience to our customers. I want to thank our amazing team of associates for their hard work and dedication,' said Michael Bender, Kohl's interim chief executive officer (CEO). 'I am honoured to assume the role of interim CEO at such an important time for our company. Kohl's has a tremendous opportunity to build on our strong foundation of over 1,100 conveniently located stores and a large and loyal customer base,' added Bender on assuming his new role as CEO. 'I am excited to lead this next chapter of Kohl's and build on the momentum we have begun to generate.' For FY25, Kohl's expects net sales to decline by 5–7 per cent and comparable sales to fall by 4–6 per cent. The operating margin is projected between 2.2–2.6 per cent, with diluted EPS in the range of $0.1 to $0.6. Capital expenditures (capex) are estimated at $400–$425 million. Fibre2Fashion News Desk (SG)
Yahoo
4 days ago
- Business
- Yahoo
Kohl's Shares Up on Better-Than-Expected EPS, Maintains FY Guidance
By Karen Roman Kohl's Corp. (NYSE: KSS) shares rose 4% in early trade Thursday after the company said its first quarter loss narrowed to $15 million, or 13 cents a share, surpassing analysts' expectations of 22 cents a share. Kohl's earnings were above its previous expectations issued in early May, when it also reported the appointment of Michael Bender as interim CEO. The company confirmed its full-year outlook with sales expected to decline 5% to 7% and EPS projected between $0.10 and $0.60, it said in a statement. 'Our first quarter performance was ahead of our expectations and the actions we are taking are starting to make progress with early signs of a positive impact,' said Bender. 'Our team is focused and motivated to deliver great products, great value, and a great shopping experience to our customers.' Contact: editor@ Sign in to access your portfolio
Yahoo
4 days ago
- Business
- Yahoo
Kohl's (NYSE:KSS) Exceeds Q1 Expectations
Department store chain Kohl's (NYSE:KSS) reported Q1 CY2025 results exceeding the market's revenue expectations , but sales fell by 4.4% year on year to $3.23 billion. Its GAAP loss of $0.13 per share was 41.1% above analysts' consensus estimates. Is now the time to buy Kohl's? Find out in our full research report. Revenue: $3.23 billion vs analyst estimates of $3.2 billion (4.4% year-on-year decline, 1% beat) EPS (GAAP): -$0.13 vs analyst estimates of -$0.22 (41.1% beat) Adjusted EBITDA: $235 million vs analyst estimates of $221.6 million (7.3% margin, 6.1% beat) EPS (GAAP) guidance for the full year is $0.35 at the midpoint, missing analyst estimates by 47.4% Operating Margin: 1.9%, in line with the same quarter last year Free Cash Flow was -$202 million compared to -$133 million in the same quarter last year Same-Store Sales fell 3.9% year on year, in line with the same quarter last year Market Capitalization: $901.7 million Michael Bender, Kohl's Interim Chief Executive Officer, said, 'I am honored to assume the role of Interim CEO at such an important time for our company. Kohl's has a tremendous opportunity to build on our strong foundation of over 1,100 conveniently located stores and a large and loyal customer base.' Founded as a corner grocery store in Milwaukee, Wisconsin, Kohl's (NYSE:KSS) is a department store chain that sells clothing, cosmetics, electronics, and home goods. A company's long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. With $16.07 billion in revenue over the past 12 months, Kohl's is one of the larger companies in the consumer retail industry and benefits from a well-known brand that influences purchasing decisions. However, its scale is a double-edged sword because there is only so much real estate to build new stores, placing a ceiling on its growth. For Kohl's to boost its sales, it likely needs to adjust its prices or lean into foreign markets. As you can see below, Kohl's demand was weak over the last six years (we compare to 2019 to normalize for COVID-19 impacts). Its sales fell by 3.7% annually as it didn't open many new stores and observed lower sales at existing, established locations. This quarter, Kohl's revenue fell by 4.4% year on year to $3.23 billion but beat Wall Street's estimates by 1%. Looking ahead, sell-side analysts expect revenue to decline by 5.6% over the next 12 months, a slight deceleration versus the last six years. This projection is underwhelming and implies its products will face some demand challenges. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. A retailer's store count often determines how much revenue it can generate. Over the last two years, Kohl's has kept its store count flat while other consumer retail businesses have opted for growth. When a retailer keeps its store footprint steady, it usually means demand is stable and it's focusing on operational efficiency to increase profitability. Note that Kohl's reports its store count intermittently, so some data points are missing in the chart below. The change in a company's store base only tells one side of the story. The other is the performance of its existing locations and e-commerce sales, which informs management teams whether they should expand or downsize their physical footprints. Same-store sales is an industry measure of whether revenue is growing at those existing stores and is driven by customer visits (often called traffic) and the average spending per customer (ticket). Kohl's demand has been shrinking over the last two years as its same-store sales have averaged 5.5% annual declines. This performance isn't ideal, and we'd be concerned if Kohl's starts opening new stores to artificially boost revenue growth. In the latest quarter, Kohl's same-store sales fell by 3.9% year on year. This decrease represents a further deceleration from its historical levels. We hope the business can get back on track. We were impressed by how significantly Kohl's blew past analysts' gross margin, EPS, and EBITDA expectations this quarter. We were also excited its revenue outperformed Wall Street's estimates. On the other hand, its full-year EPS guidance missed. Overall, we think this was a decent quarter with some key metrics above expectations. The stock traded up 3.4% to $8.40 immediately after reporting. Sure, Kohl's had a solid quarter, but if we look at the bigger picture, is this stock a buy? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free.
Bloomberg
4 days ago
- Business
- Bloomberg
Stock Movers: Nvidia, HP, Salesforce
On this episode of Stock Movers: - Nvidia (NVDA) shares are higher this morning after a positive earnings report showing it expects revenue of about $45 billion in the second fiscal quarter, despite new export restrictions costing about $8 billion in Chinese revenue. Nvidia is ramping up production of its latest semiconductor design, Blackwell, and is offering its chips as part of whole computer systems to speed up AI deployment. - Salesforce (CRM) is lower this morning despite raising its annual forecast. It's acquiring Informatica for about $8 billion to help customers implement AI tools sooner, and its fiscal first-quarter revenue increased 8% to $9.8 billion, exceeding Wall Street estimates. However, it's uncertain how it will integrate the company into - HP (HPQ) is down this morning after its profit outlook fell short of estimates and it cut its annual earnings forecast due to a weaker economy and continuing costs from US tariffs on goods from China. - Kohl's Corp. (KSS) shares are higher in the premarket as it reaffirmed its full-year outlook and reported revenue of $3 billion for the quarter, roughly in line with analysts' expectations. Kohl's is looking for a new leader after the ousting of its former CEO, Ashley Buchanan, and is currently being led by interim CEO Michael Bender.
