THE WHAT? Kohl’s has reported its results for the first quarter of fiscal 2022. The department store chain saw sales drop 5.2 percent in the three months to April 30, 2022, versus the same period last year.
THE DETAILS Kohl’s has revised its full year outlook accordingly with net sales growth now expected to be in range of 0 to 1 percent.
The US retailer said that its review of ‘strategic alternatives’ was ongoing and that it has been engaging with multiple interested parties.
THE WHY? Michelle Gass, Kohl’s Chief Executive Officer, commented, “The year has started out below our expectations. Following a strong start to the quarter with positive low-single digits comps through late March, sales considerably weakened in April as we encountered macro headwinds related to lapping last year’s stimulus and an inflationary consumer environment. We remain committed to our long-term strategy and are encouraged that our updated store experience with Sephora at Kohl’s shops, delivered positive comparable store sales across these 200 locations for the quarter. We continue to expect our business to improve as the year progresses with growth in the second half as we benefit from the roll out of 400 additional Sephora stores, enhanced loyalty rewards and further investment in our stores.“