Kohl’s Q3 comparable sales down, narrows sales forecast

Kohl’s third quarter net sales decreased 5.2 percent, to 3.8 billion dollars, with comparable sales down 5.5 percent.

Net sales for the nine months decreased 4.5 percent to 10.9 billion dollars, with comparable sales down 5 percent.

Commenting on the third quarter results, Tom Kingsbury, Kohl’s chief executive officer, said: “Kohl’s third quarter earnings reflect strong gross margin and expense management as well as additional progress against our strategic priorities. In addition, we drove a 13 percent reduction in inventory as we benefited from our new disciplines.”

Kohl's posts drop in Q3 net income

The company said, gross margin as a percentage of net sales was 38.9 percent, an increase of 158 basis points. Gross margin for the nine months period as a percentage of net sales was 39 percent, an increase of 56 basis points.

Operating income for the quarter decreased to 157 million dollars and as a percentage of total revenue, operating income was 3.9 percent, a decrease of 82 basis points. Net income declined to 59 million dollars or 53 cents per diluted share.

Year-to-date operating income declined to 418 million dollars, while as a percentage of total revenue, operating income was 3.6 percent, a decrease of 91 basis points. Net income decreased to 131 million dollars or 1.18 dollars per diluted share.

Kohl’s expects FY23 sales to decline between 2.8 to 4 percent

For the full year 2023, the company expects net sales to decrease in the range of 2.8 percent to 4 percent compared to the prior guidance of a decrease between 2 percent to 4 percent.

Operating margin is expected to be approximately 4 percent, consistent with the prior guidance and diluted earnings per share are forecasted to be in the range of 2.30 dollars to 2.70 dollars compared to the prior guidance range of 2.10 dollars to 2.70 dollars.

On November 7, 2023, Kohl’s board of directors declared a quarterly cash dividend on the company’s common stock of 50 cents per share payable December 20, 2023 to shareholders of record at the close of business on December 6, 2023.