Kohl’s Q4 and full year sales and earnings decline

Kohl’s Corporation said net sales decreased 7.2 percent to 5.8 billion dollars, with comparable sales down 6.6 percent. For the full year, net sales decreased 7.1 percent to 17.2 billion dollars, with comparable sales down 6.6 percent.

Fourth quarter net loss was $273 million, or ($2.49) per diluted share. This compares to net income of $299 million, or $2.20 per diluted share in the prior year. Net loss for the year was 19 million dollars or 15 cents loss per diluted share compared to net income of 938 million dollars or 6.32 dollars per diluted share, and adjusted net income of 1.1 billion dollars or 7.33 dollars per diluted share, in the prior year.

Commenting on the trading performance, Tom Kingsbury, Kohl’s chief executive officer, stated: “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. Our efforts to drive the business are already underway.”

Gross margin was 23 percent, a decrease of 1,016 basis points. Operating loss was 302 million dollars compared to operating income of 450 million dollars in the prior year. As a percentage of total revenue, operating loss was 5 percent, a decrease of 1,195 basis points year-over-year.

Full year gross margin as a percentage of net sales was 33.2 percent, a decrease of 485 basis points. Operating income was 246 million dollars compared to 1.7 billion dollars in the prior year. As a percentage of total revenue, operating income was 1.4 percent, a decrease of 729 basis points year-over-year.

For the full year 2023, the company currently expects net sales to decrease 2 percent to 4 percent, operating margin of approximately 4 percent, and diluted earnings per share in the range of 2.10 dollars to 2.70 dollars.

On February 21, 2023, Kohl’s board of directors declared a quarterly cash dividend on the company’s common stock of 50 cents per share payable March 29, 2023 to shareholders of record at the close of business on March 15, 2023.