Kohl’s reports fourth-quarter losses for the year – Sourcing Journal

Kohl’s Corp. is still waiting for its strategy to adopt Sephora and become the nationwide destination for active and casual offers to bear fruit.

As expected, Menomonee Falls, Wisconsin-based Kohl’s on Wednesday reported revenue and earnings declines for the fourth quarter and for the full year 2022, but sees a smaller revenue decline for the coming year.

For the quarter ended January 28, net loss was $273 million, or $2.49 per diluted share, compared to net income of $299 million, or $2.20 per diluted share Year 2021. The number, which came in below Wall Street expectations, dragged the stock price down about 7 percent in premarket trading through 8 a.m. Wednesday.

network sale declined 7.2 percent to $5.8 billion from $6.2 billion with comparable sales down 6.6 percent.

“Kohl’s fourth quarter results reflect significant proactive actions we have taken to better position the company for 2023 and selling pressure driven by the ongoing inflationary environment,” said Tom Kingsbury, Chief Executive Officer von Kohl, in a statement. “Kohl’s has a solid foundation and a highly motivated team with a set of priorities to capitalize on what I see as a significant opportunity to make a difference in the retail landscape.

“Our efforts to move the business forward are already underway,” added Kingsbury. “We are refining our strategy and restoring trading disciplines with a client-centric focus across the organization. I am confident that our efforts will result in improved and more consistent sales and earnings development over the long term.”

The top management was restructured last month. Dave Alves became President and Chief Operating Officer. Nick Jones became Chief Merchandising and Digital Officer. And Kingsbury became CEO after briefly serving as interim CEO.

In other results for the quarter, inventories were $3.2 billion, up 4 percent year over year.

The operational loss was $302 million compared to an operating profit of $450 million a year earlier. Operating cash flow was $707 million driven by working capital improvements in the fourth quarter of 2022.

Selling, general, and administrative (SG&A) expenses decreased 0.6 percent year-over-year to $1.7 billion.

There was a net loss for the whole of 2022 of $19 million, or $0.15 per diluted share. This compares to net income of $938 million, or $6.32 per diluted share, and adjusted net income of $1.1 billion, or $7.33 per diluted share, in the prior year.

Net sales decreased 7.1 percent year-over-year to $17.2 billion from $18.5 billion, with comparable sales declining 6.6 percent.

operating result was $246 million compared to $1.7 billion a year earlier. As a percentage of total revenue, operating income was 1.4 percent, down 729 basis points year-over-year. Operating cash flow was $282 million.

SG&A costs increased 2 percent year-on-year to $5.6 billion.

The forecast for 2023 is as follows: