Kohl's swings to surprise loss; warns on profit for year
Kohl’s plans to cut inventory by roughly 5%, be more surgical in discounts and change how it showcases fashion to inspire shoppers to buy after the department store chain reported a big loss and a sales slump in the fourth quarter
NEW YORK (AP) — Kohl's plans to cut inventory by roughly 5% this year, be more surgical with discounts and change how it showcases its merchandise to get shoppers to buy after the department store chain reported a big loss and a sales slump in the fourth quarter.
The retailer, based in Menomonee Falls, Wisconsin, also issued an annual profit outlook that fell below Wall Street expectations as the company grapples with customers cutting back on discretionary items amid stubbornly high inflation.
Shares dropped as much as 10% before the opening bell Wednesday but clawed back some of those losses after Kohl's executives detailed plans to energize its business.
In a conference call with analysts, newly appointed CEO Tom Kingsbury said Kohl's is making progress in cosmetics with its Sephora partnership, whose beauty shops were launched in 2021 and are being rolled out throughout the chain. However, he acknowledged that the department store chain has lost ground in other key categories.
