American retail store chain Kohl's Q2 FY22 net sales down 8.5%

Kohl’s has also updated its full year 2022 financial outlook. The company now expects net sales to decline in the range of 5-6 per cent as compared to the prior year. Operating margin is now expected to be in the range of 4.2-4.5 per cent and earnings per share is expected to be in the range of $2.80 to $3.20, excluding any non-recurring charges, the company said in a media release.

“Second quarter results were impacted by a weakening macro environment, high inflation and dampened consumer spending, which especially pressured our middle-income customers. We have adjusted our plans, implementing actions to reduce inventory and lower expenses to account for a softer demand outlook. Kohl’s has navigated difficult periods in the past and I am confident in our ability to successfully manage through the current uncertainty. I want to thank our incredible associates around the country for their commitment to Kohl’s and for providing excellent service to our customers every day. We continue to execute on our transformation strategy and are pleased to deliver outsized performance in the nearly 600 stores which have been refreshed and elevated, featuring Sephora as a key cornerstone,” said Michelle Gass, Kohl’s chief executive officer.

“While 2022 has turned out to be more challenging than initially expected, Kohl’s remains a financially strong company with significant long-term growth potential. Our $500 million accelerated share repurchase underscores our steadfast confidence in Kohl’s future and focus on creating shareholder value. We also remain firmly committed to our current dividend,” said Gass.

Fibre2Fashion News Desk (KD)