Shoppers walk in front of a Kohl’s store in Mount Kisco, New York.
Scott Mullin | CNBC
kohls Shares rose 20% in Thursday morning trading after the company reported its best sales performance in four years.
CEO Michael Bender told CNBC that the company “started knocking on the door to growth” this quarter.
“We have shown that we are managing our business with great discipline and strong expense controls. Our inventory is much cleaner than it has been in the past, and our balance sheet continues to show strength,” Bender said.
The company said its fiscal first quarter net sales declined 1.7% and like-for-like sales fell 1.1% as it looks to rebuild its business and regain market share. Last quarter, Kohl’s reported a 2.8% year-over-year decline in comparable sales.
Here’s how the company’s fiscal first-quarter results compare to Wall Street expectations, based on a survey of analysts by LSEG.
Loss per share: 13 cents vs. 19 cents expected Earnings: $3 billion vs. $2.99 billion expected
Kohl’s reported a net loss of $14 million, or 13 cents per share, for the period ended May 2, compared with a net loss of $15 million, or 13 cents per share, in the year-ago period. Revenue decreased from $3.05 billion to $3.0 billion.
Kohl’s reaffirmed its full-year outlook, expecting net and comparable sales to be in the range of down 2% to flat. The company expects adjusted earnings per share to be between $1 and $1.60.
“It’s not over yet,” Bender told CNBC on Thursday. “I think it’s really important to emphasize that as well. We love the trajectory of where things are headed, but we know there’s still a lot of work ahead of us.”
Bender said the retailer has seen “meaningful improvement” not only for its own brands but also for Kohl’s card customers. Bender said pressures such as rising gas prices and persistent inflation are impacting Kohl’s strategy because the company’s primary customer base is low- and moderate-income shoppers.
“Right now, as families try to make ends meet around the kitchen table, especially in the context of rising energy prices and labor market challenges, that means we must continue to lean more and more into our values,” Bender said.
The company is also working to improve its store experience and manage inventory to help customers more easily find the products they want.
Kohl’s has struggled with declining sales coupled with macroeconomic pressures, and its stock has plunged more than 35% this year as of Wednesday’s market close.
The company also confirmed to CNBC that while Kohl’s has not yet received a refund, it has applied for a refund of the duties and is eligible for about $190 million in refunds.
