Kohl's negative Q4 performance signals turnaround woes
Kohl's store Credits: Kohl's Corporation Department store chain Kohl's reported a significant downturn in its fourth-quarter performance, signalling ongoing challenges in its turnaround strategy. Net sales plummeted by 9.4 percent, while comparable sales declined by 6.7 percent. Earnings per share (EPS) dropped to 95 cents for the quarter under review. Despite initiatives implemented by CEO Ashley Buchanan since taking charge in January, including workforce reductions and store closures, the company's outlook remains pessimistic. Kohl's projects a 5 to 7 percent decline in fiscal year 2025 net sales and a 4 to 6 percent decrease in comparable sales. The company also anticipates diluted EPS in the range of 10 to 60 cents, significantly below analyst expectations. "Kohl's possesses a substantial opportunity to leverage its strengths, address critical areas for improvement, and enhance customer service," stated Buchanan. "We have delineated key strategic priorities and are implementing measures in 2025 to reposition Kohl's for sustained growth. Our customers expect superior products, exceptional value, and a seamless shopping experience." For the full fiscal year, Kohl’s reported a 7.2 percent year-over-year decline in net sales to 15.4 billion dollars, with comparable sales down 6.5 percent. Net income dropped to 167 million dollars or 1.50 dollars per adjusted diluted share. On March 11, 2025, Kohl’s board of directors declared a quarterly cash dividend of 0.125 dollars per share.
Department store chain Kohl's reported a significant downturn in its fourth-quarter performance, signalling ongoing challenges in its turnaround strategy. Net sales plummeted by 9.4 percent, while comparable sales declined by 6.7 percent. Earnings per share (EPS) dropped to 95 cents for the quarter under review.
Despite initiatives implemented by CEO Ashley Buchanan since taking charge in January, including workforce reductions and store closures, the company's outlook remains pessimistic. Kohl's projects a 5 to 7 percent decline in fiscal year 2025 net sales and a 4 to 6 percent decrease in comparable sales.
The company also anticipates diluted EPS in the range of 10 to 60 cents, significantly below analyst expectations.
"Kohl's possesses a substantial opportunity to leverage its strengths, address critical areas for improvement, and enhance customer service," stated Buchanan. "We have delineated key strategic priorities and are implementing measures in 2025 to reposition Kohl's for sustained growth. Our customers expect superior products, exceptional value, and a seamless shopping experience."
For the full fiscal year, Kohl’s reported a 7.2 percent year-over-year decline in net sales to 15.4 billion dollars, with comparable sales down 6.5 percent. Net income dropped to 167 million dollars or 1.50 dollars per adjusted diluted share.
On March 11, 2025, Kohl’s board of directors declared a quarterly cash dividend of 0.125 dollars per share.
