Shoppers walk past a Kohl’s store in Mount Kisco, New York.
Scott Mlyn | CNBC
Kohl’s The stock jumped 20% Thursday morning after the retailer reported its best comparable sales performance in four years.
CEO Michael Bender told CNBC that the quarter marked the company “knocking on the door of growth.”
“We have shown that we run the business with great discipline, strong expense management, our inventory is much cleaner than it has ever been and the balance sheet continues to show strength,” Bender said.
The retailer said its net sales fell 1.7% and comparable sales fell 1.1% in its fiscal first quarter, as it aims to turn around its business and regain market share. In the previous quarter, Kohl’s reported that its comparable sales fell 2.8% from a year earlier.
Here’s how the company performed in its fiscal first quarter compared to what Wall Street expected, based on a survey of analysts by LSEG:
- Loss per share: 13 cents versus 19 cents expected
- Income: $3 billion versus $2.99 billion expected
For the period ended May 2, Kohl’s reported a net loss of $14 million, or 13 cents per share, compared with a net loss of $15 million, or 13 cents per share, the year before. Revenue fell from $3.05 billion to $3 billion.
Kohl’s reaffirmed its outlook for the full year, expecting net sales and comparable sales to be in a range of down 2% to flat. It expects adjusted earnings per share of between $1 and $1.60.
“We’re not done,” Bender told CNBC on Thursday. “I think it’s very important to emphasize that as well, that we like the trajectory that things are going, but we know we still have a lot of work ahead of us.”
Bender said the retailer has seen “significant improvement” in its Kohl’s card customers as well as its proprietary brand. Since the company’s primary audience is low- and middle-income shoppers, Bender said pressures such as high gas prices and sustained inflation are affecting Kohl’s strategy.
“There are families [that] “We’re sitting around the kitchen table right now, trying to make a success of our lives, especially in the face of rising energy prices and job market challenges, and that just means we have to continue to look more and more toward value,” Bender said.
The company is also working to improve the in-store experience and manage inventory to help customers find what they want more easily.
Kohl’s has been struggling with declining sales coupled with macroeconomic pressures, leading the stock to plunge more than 35% this year as of market close Wednesday.
The company also confirmed to CNBC that it has requested duty refunds and is eligible for approximately $190 million in returns, although Kohl’s has not yet received any money.