Kohl’s posted a fourth-quarter loss that took Wall Street by surprise.
Net loss was $273 million, or $2.49 per diluted share, versus net income of $299 million, or $2.20 per diluted share, in the year-earlier period, the company reported.
An analyst consensus estimate published by Yahoo Finance called for earnings per diluted share of 98 cents and revenues of $5.98 billion.
Comparable sales decreased 6.6% in the quarter versus the year-prior period as net sales decreased 7.2% to $5.78 billion. Total revenue was $6.02 billion versus $6.5 billion in the year-before quarter. Operating loss was $302 million versus operating income of $450 million in the year-previous period.
For the full fiscal year, net loss was $19 million, or 15 cents per diluted share, versus net income of $938 million, or $6.32 per diluted share, in the year-earlier when Kohl’s also posted a net income figure adjusted for one time events of $1.1 billion, or $7.33 per diluted share, Kohl’s noted.
Comparable sales decreased 6.6% in the quarter versus the year prior as net sales decreased 7.1% to $17.16 billion. Total revenue was $18.1 billion versus $19.43 billion in the year before. Operating income was $246 million versus $1.68 billion in the year previous.
In announcing the financial results, Tom Kingsbury Kohl’s CEO, said, “Kohl’s fourth quarter results reflect meaningful proactive measures we took to better position the business for 2023 as well as sales pressure driven by the ongoing persistent inflationary environment. Kohl’s has a solid foundation and a highly motivated team with a set of priorities to capitalize on what I see as a substantial opportunity to make a difference in the retail landscape. Our efforts to drive business are already underway. We are refining our strategy and re-establishing merchandise disciplines with a customer-centric focus across the organization. I am confident that our efforts will drive improved, and more consistent, sales and earnings performance over the long term.”
