Kohl's Corp. didn't release a full-year forecast on Thursday, citing unpredictability in business trends, high inflation and the abrupt departure of its CEO, as retailers struggle to attract shoppers dismayed by rising prices and worried about a potential recession.
The move came as the company said third-quarter net income fell to $97 million, or $0.82 per share, compared with $243 million, or $1.65 per share, a year earlier. That exceeded the Zacks estimate of $0.81 per share. The stock rose 3% to $31 in morning trading.
- Kohl's didn't release a full-year forecast alongside its third-quarter earnings, citing unpredictable business trends
- Kohl's revenue and net sales decreased in the third quarter
- Kohls and other large retailers have struggled in the last year as Americans cut back on purchases
Revenue dropped 7% to $4.28 billion, and net sales decreased 7.2% to $4.1 billion in the third quarter. CEO Michelle Gass announced her exit on Nov. 7.
“Our middle-income customers continued to purchase fewer items per trip and trade down to value-oriented private brands,” Kohl’s said.
As inflation persists and a recession threatens, many retailers are bracing for the worst.
On Wednesday, Target Corp. cut its profit outlook, saying a “challenging economic environment,” made it too difficult to predict. Sales have also slipped at retailers including Best Buy Co. and Advance Auto Parts Inc.
One outlier: luxury. Macy's shares jumped today after it reported strong sales of high-end items.
And at Kohl’s, sales of makeup brand Sephora have outperformed.