With overall sales of $3.36B, slightly above expectations, while comparable sales fell 4.3% in line with Wall Street estimates, Kohl's posted an unexpected profit of $0.13 per share ($14M) for the first quarter. The company updated its full-year projection, predicting a 2% to 4% fall in net sales and profits per share from $2.10 to $2.70. Compared to the same quarter the previous year, Kohl's net income increased to $0.13 per share from $0.11 per share, and the company's shares closed more than 7% higher. - The firm highlighted adjustments it has made to draw customers, such as growing Sephora stores and highlighting giftable items.
- In a challenging economic landscape, Kohl's saw increased in-store traffic and average basket size while decreasing inventory by 6% YoY.
- Margins increased during the quarter, and the firm intends to increase revenues in the second part of the year with more Sephora locations and fresh goods.
- Kohl's stock has taken a big hit this year, closing at $19.27 on Tuesday and down over 23% YTD, despite the S&P 500 and XRT having risen and fallen moderately, respectively.
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