In the first quarter (Q1) of 2022, the company’s net sales and comparable sales decreased by 5.2%. Its total revenue in the first quarter was $3,715 million, up 4.4% from the same quarter in 2021. Its net profit was unchanged at $14 million in the first quarter of 2022 .
Kohl’s Corp, a major U.S.-based omnichannel retailer, expects net sales to be between 0% and 1% in fiscal 2022 from a year earlier. The operating margin should now be between 7.0 and 7.2%. In 2022, earnings per share are expected to be between $6.45 and $6.85, excluding one-time charges.
Kohl’s Board of Directors is thoroughly testing the company’s stand-alone strategic plan against potential alternatives and has appointed its finance committee to lead the ongoing review of expressions of interest. The board engaged Goldman Sachs to lead an extensive process of exploring strategic alternatives, which to date has included engagement with more than 25 parties, the company said in a press release.
“The year has started below our expectations. After a strong start to the quarter with positive single-digit comps through the end of March, sales weakened significantly in April as we encountered headwinds from last year’s slowing recovery and an environment inflationary consumption. We remain committed to our long-term strategy and are encouraged that our updated in-store experience, with Sephora at Kohl’s stores, generated positive same-store sales in all 200 locations for the quarter. We continue to expect our business to improve as the year progresses, with growth in the second half as we benefit from the rollout of 400 additional Sephora stores, enhanced loyalty rewards and new investment in our stores. “, said Michelle Gass, CEO of Kohl.
“In terms of our consideration of strategic alternatives, we continue to engage with multiple interested parties. We have formally communicated the specific procedures for submitting executable offers due in the coming weeks. We are continuing our detailed due diligence phase and are pleased with the number of parties recognizing the value of our business and our plan,” Gass said.
Fibre2Fashion (RR) News Desk