Kohl’s Corporation ( (KSS) ) has released its Q3 earnings. Here is a breakdown of the information Kohl’s Corporation presented to its investors.
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Kohl’s Corporation is a leading omnichannel retailer known for combining top brands, excellent value, and convenience for its customers, operating over 1,100 stores across 49 states and online. In its third quarter fiscal 2024 earnings report, Kohl’s announced a decline in net sales by 8.8% and a comparable sales decrease of 9.3%, with diluted earnings per share recorded at $0.20. Despite strong performances in growth areas, including Sephora and home decor, these were insufficient to counteract declines in core segments like apparel and footwear.
Kohl’s financial highlights revealed a gross margin increase of 20 basis points to 39.1%, and a 5.1% reduction in SG&A expenses, despite an overall decrease in operating income from $157 million to $98 million year-over-year. The company also reported a net income of $22 million, compared to $59 million in the previous year, and a decrease in inventory by 3%. Additionally, Kohl’s made progress in reducing long-term debt by $113 million.
A significant announcement was the planned CEO transition, with Tom Kingsbury stepping down and Ashley Buchanan taking over as CEO starting January 15, 2025. This leadership change comes as Kohl’s aims to reverse sales declines and improve execution, especially ahead of a competitive holiday season.
Looking ahead, Kohl’s has adjusted its full-year 2024 financial outlook, anticipating net sales to decrease between 7% and 8%, and comparable sales to fall by 6% to 7%. The expected operating margin is set to range from 3.0% to 3.2%, with diluted EPS projected between $1.20 and $1.50. The company remains focused on key strategic investments, including the expansion of its Sephora partnership.
