US retailer Kohl's expects net sales to increase 0-1% YoY in 2022

In the first quarter (Q1) of 2022, the company’s net sales and comparable sales decreased by 5.2 per cent. Its total revenue in Q1 amounted to $3,715 million, up 4.4 per cent from the same quarter in 2021. Its net income remained unchanged at $14 million in Q1 2022.

The Kohl’s Board is thoroughly testing the company’s standalone strategic plan against potential alternatives and has designated its finance committee to lead the ongoing review of expressions of interest. The board engaged Goldman Sachs to conduct a broad process to explore strategic alternatives, which to date has included engagement with over 25 parties, the company said in a press release.

“The year has started out below our expectations. Following a strong start to the quarter with positive low-single digits comps through late March, sales considerably weakened in April as we encountered macro headwinds related to lapping last year’s stimulus and an inflationary consumer environment. We remain committed to our long-term strategy and are encouraged that our updated store experience, with Sephora at Kohl’s shops, delivered positive comparable store sales across these 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 roll out of 400 additional Sephora stores, enhanced loyalty rewards and further investment in our stores,” said Michelle Gass, Kohl’s chief executive officer.

“Regarding our review of strategic alternatives, we continue to engage with multiple interested parties. We have formally communicated the specific procedures for the submission of actionable bids due in the coming weeks. We continue with our detailed diligence phase and are pleased with the number of parties who recognise the value of our business and plan,” said Gass.   

Fibre2Fashion News Desk (RR)