Shares of Kohl’s Corp.
KSS,
tumbled 7.3% in premarket trading Thursday, after the department store chain reported fiscal second-quarter profit that missed expectations while revenue beat, and slashed its full-year outlook, as a weakening economy and high inflation weighed. Net income dropped to $143 million, or $1.11 a share, from $382 million, or $2.48 a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of $1.11 missed the FactSet consensus of $1.12. Revenue fell 8.1% $4.09 billion, above the FactSet consensus of $3.95 billion, while same-store sales declined 7.7% to beat expectations of an 8.1% decline. “Second quarter results were impacted by a weakening macro environment, high inflation and dampened consumer spending, which especially pressured our middle-income customers,” said Chief Executive Michelle Gass. “We have adjusted our plans, implementing actions to reduce inventory and lower expenses to account for a softer demand outlook.” For fiscal 2022, the company cut its guidance ranges for sales to a decline of 5% to 6% from flat to up 1%, for adjusted EPS to $2.80 to $3.20 from $6.45 to $6.85 and for operating margin to 4.2% to 4.5% from 7.0% to 7.2%. Separately, Kohl’s said it entered into an accelerated share repurchase (ASR) agreement to buy back about $500 million worth of the company’s stock. Kohl’s stock has tumbled 21.3% over the past three months through Wednesday, while the S&P 500
SPX,
has gained 8.9%.
