Kohl’s expects bids from potential buyers soon
The retailer missed earnings estimates and cut its profit and sales outlook for the year
• The retailer missed earnings estimates and cut its profit and sales outlook for the year
Kohl’s Corp (NYSE: KSS) said on Thursday that bids from potential buyers are expected in the coming weeks, amid pressure from activists to sell.
Activist hedge fund Macellum Advisors had earlier in January asked the retailer to find a new owner as Kohl’s sales have not shown strong growth.
For the fiscal first quarter, Kohl’s missed earnings estimates and cut its profit and sales outlook for the year.
“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,” said CEO Michelle Gass.
The retailer reported net income of $14 million, or 11 cents per share, compared with $14 million, or 9 cents per share, a year earlier.
Kohl’s sales fell to $3.72 billion from $3.89 billion a year earlier, but beat analysts’ estimates of $3.68 billion.
For 2022, the company now expects adjusted earnings per share of $6.45 to $6.85, compared with its prior forecast of $7.00 to $7.50.
Picture Credits: Getty Images
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