Same-store sales in Kohl’s first quarter fell 5.2%.
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Another rough earnings report from another retailer.
) reported first-quarter adjusted earnings of 11 cents a share, widely missing analysts’ forecasts. Same-store sales in the quarter fell 5.2%.
The retailer also cut its guidance for the fiscal year, saying it expects adjusted earnings of $6.45 to $6.85 a share, down from its previous estimate of $7 to $7.50 a share, and below analysts’ expectations.
Net sales are expected in the range or zero to 1% from the prior year, Kohl’s said. Operating margin is expected at between 7% and 7.2%, down from its previous view of 7.2% to 7.5%.
“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,” said Michelle Gass, chief executive, in a statement.
Retailer Kohl’s also updated its review of strategic alternatives, saying that it continues “engage with multiple interested parties.”
“We have formally communicated the specific procedures for the submission of actionable bids due in the coming weeks. We continue with our detailed diligence phase and are pleased with the number of parties who recognize the value of our business and plan,” Gass said.
The stock declined 5.4% to $40.70 in premarket trading Thursday.
Analysts expected Kohl’s to post adjusted earnings of 69 cents a…