Kohl’s swings to surprise loss and bleak outlook

NEW YORK (AP) — Kohl’s swung to a surprise fourth-quarter loss and sales slumped as the department store’s customers cut back on spending as inflation squeezed family budgets.

The retailer also released an annual outlook on Wednesday that came in well below Wall Street’s expectations, sending shares down 10% in premarket trading.

The company reported a loss of $273 million, or $2.49 per share, for the quarter ended January 28. Industry analysts had forecast earnings per share of 97 cents, according to a poll by FactSet.

Last year, the company made $299 million, or $2.20 per share, over the same period.

Revenue fell just over 7% to $6.02 billion. Comparable store sales – those from stores open for at least a year and online channels – fell 6.6%.

Kohl’s is under pressure from activist shareholders to transform its business. It’s grappling with higher costs and a retreat from its budget-conscious buyers, who are more cautious about their spending amid rising prices for gas, groceries, and just about everything else.

Last month, the Menomonee Falls, Wisconsin retailer named Tom Kingsbury, who was appointed interim CEO in early December, as its permanent CEO. Kingsbury, a Kohl’s board member with more than 40 years of retail experience, took on Michelle Gass, who was appointed president of Levi Strauss & Co.

On Tuesday, Kohl’s announced that 30-year retail veteran Dave Alves was retiring, effective January 1.