On May 16, 2019, a shopkeeper at a Kohl’s department store in Illinois, Peru prepares to pay for the items.
Daniel Acker | Bloomberg Getty Images
Kohl’s reported a 13.3% drop in quarterly net sales on Tuesday, as the Coronavirus epidemic limited the number of people visiting its stores to buy clothes, shoes and beauty items.
Nevertheless, CEO Michelle Gase said that due to the strongness in digital sales, Kohl’s results exceeded internal expectations.
“We are well positioned during the holiday season,” she said.
Its shares were falling less than 1% in premarket trading.
Here’s what the retailer expected from analysts during the third quarter on October 31, based on refinitive data:
- Earnings per share: 1 percent, adjusted, vs. loss of 43 cents
- Net sales: $ 3.78 billion vs. $ 3.86 billion expected
For the quarter ended October 31, the company reported a net loss of $ 12 million, or 8 cents per share, compared with net income of $ 123 million, or 78 cents per share, a year earlier. Barring one-time charges, Kohl’s earned a share, which was better than the 43 percent loss expected by analysts.
Kohli’s net sales increased to $ 3.78 billion from $ 4.36 billion a year ago. According to Refinitive’s estimate, analysts were calling for $ 3.86 billion.
Total revenue declined 14% to $ 3.98 billion from $ 4.63 billion a year earlier.
Store sales similar to Kohl’s, which track online sales and Kohl’s stores have been open for at least 12 months, also fell 13.3%. Analysts, on average, were calling for a 11.39% drop.
Kohl’s also said it would reinstate its quarterly dividend in the first half of 2021, after it was halted due to an epidemic earlier this year.
As of Monday’s market close, Kohl’s shares are down nearly 49% this year. Kohl’s market cap is $ 4.1 billion.
See the full earnings press release here.
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