Customers leave Kohl’s store on November 12, 2015 in San Rafael, California.
Justin Sullivan | Getty Images News | Getty Images
kohl He said Thursday that final, fully-funded bids are expected from potential buyers in the coming weeks, as the retailer faces mounting pressure from activists to sell.
Chief Executive Officer Michelle Gass said Coles was “delighted by the number of parties that recognize the value of our business and our plan.”
But the company’s stock fell 5% in pre-market trading after the retailer posted huge profits in its fiscal first quarter and trimmed its earnings and sales forecasts for the year. In a press release, Gass said 2022 is beginning to fall short of its expectations.
“Sales fell significantly in April as we faced macroeconomic headwinds related to the impact of stimulus last year and an inflationary consumer environment,” Gass said.
Kohl’s joins a growing list of major retailers, including Walmart And Goal, which has seen logistical expenditures and hiring fall into profits amid rising inflation for 40 years. These companies also have I’m starting to see American consumers adjust their spending behaviour They face higher prices on everything from milk to sportswear.
Kohl’s now expects adjusted earnings per share for fiscal year 2022 of $6.45 to $6.85, compared to its previous forecast of $7.00 to $7.50.
Net sales are expected to remain flat to 1% from last year’s levels, compared to previous guidance of 2% to 3%.
Here’s what Kohl’s did in the three months ending April 30, compared to what Wall Street had been expecting, according to a survey of analysts conducted by Refinitiv:
- Earnings per share: 11 cents vs. 70 cents expected
- Revenue: $3.72 billion vs. $3.68 billion forecast
Kohl’s reported fiscal first-quarter net income of $14 million, or 11 cents a share, compared to $14 million, or 9 cents a share, a year earlier. That was lower than analysts’ expectations of 70 cents a share.
Sales fell to $3.72 billion from $3.89 billion a year earlier, though it still beat analysts’ estimates of $3.68 billion in revenue.
Coles said comparable sales fell 5.2%. Analysts had been looking for a 0.5% increase.
Find the full press release from Kohl’s here.
This story is developing. . Please check back for updates