THE WHAT? Kohl’s has reported its results for the first quarter of fiscal 2023. The US department store saw net sales drop 3.3 percent yoy to US$3.4 billion although gross margin improved by 67 basis points.

THE DETAILS The company affirmed its financial outlook for fiscal 2023, forecasting a drop in net sales of between 2 and 4 percent.

THE WHY? Tom Kingsbury, Kohl’s chief executive officer, said, “Our first quarter results were in line with our expectations and represented a first step as we work to drive sales and earnings performance over the long-term. We delivered margin expansion, as well as a 6 percent reduction in inventory. In addition, our stores business achieved productivity gains and Sephora at Kohl’s continued its sales momentum.

“We are making progress against each of our key 2023 priorities, enhancing our customer experience, simplifying our value strategies, managing inventory and expenses with discipline, and strengthening our balance sheet. I would like to thank the entire Kohl’s team for driving against these priorities with a clear focus and strong determination. While there is still work to be done and the macroeconomic environment remains challenging, we are affirming our 2023 guidance and continue to have conviction in Kohl’s longer-term opportunity.”