Kohl’s Q2 comparable sales decline by 7.7 percent

Kohl’s Corporation’s second quarter comparable sales decreased 7.7 percent and net sales decreased 8.5 percent to 4,087 million dollars.

The company reported second quarter net income of 143 million dollars and diluted earnings per share of 1.11 dollars compared to last year’s 382 million dollars and 2.48 dollars, respectively.

“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,” said Michelle Gass, Kohl’s chief executive officer in a release.

The company is updating its full year 2022 financial outlook and now expects net sales to decline in the range of 5 percent to 6 percent as compared to the prior year, operating margin is now expected to be in the range of 4.2 percent to 4.5 percent and earnings per share to be in the range of 2.80 dollars to 3.20 dollars.

On August 18, 2022, the company entered into an accelerated share repurchase agreement (ASR) to repurchase approximately 500 million dollars of the company’s common stock.

On August 9, 2022, Kohl’s board of directors declared a quarterly cash dividend on the company’s common stock of 50 cents per share payable September 21, 2022 to shareholders of record at the close of business on September 7, 2022.