Mastering declines in sales with a strategic strategy…

• Net sales: 8.8% decline in third quarter; down 6.1% since the beginning of the year.

• Comparable sales: Decrease of 9.3% in the third quarter; down 6.4% since the beginning of the year.

• Gross margin: 39.1% in the third quarter, up 20 basis points year over year.

• SG&A costs: Declined 5.1% to $1.3 billion in the third quarter.

• Net income: $22 million for the third quarter.

• Earnings per share (EPS): $0.20 for the third quarter.

• Cash and cash equivalents: $174 million at the end of the third quarter.

• Inventory: Decrease of 3% compared to last year; The transport inventory increased by 40%.

• Operating cash flow: $52 million year-to-date.

• Capital expenditure: $367 million year-to-date.

• Dividend: Distributed $55 million in third quarter; $0.50 per share announced on December 24th.

• Updated guidance for 2024: Net sales expected to decline 7% to 8%; Earnings per share are expected to be between $1.20 and $1.50.

Release date: November 26, 2024

For the full transcript of the conference call, please see the full conference call minutes.

• Sephora at Kohl’s continues to drive strong sales growth, with total beauty sales increasing 15% in the third quarter.

• The company has successfully opened Babies”R”Us stores in 200 stores to attract younger customers and expand its market reach.

• Kohl’s Corp (NYSE:KSS) is focused on improving inventory management, with a 40% increase in private label carrying inventory expected to impact sales in the fourth quarter.

• The company is taking aggressive measures to stabilize sales trends, including increasing marketing efforts and reintroducing popular categories such as fine jewelry.

• Kohl’s Corp (NYSE:KSS) cut expenses by 5% in the third quarter, demonstrating effective cost control despite sales challenges.

• Comparable sales fell 9% in the third quarter, with apparel and footwear business declining significantly.

• Traffic fell approximately 3% in the third quarter, particularly during the back-to-school season, impacting overall sales performance.

• The decline in revenue for private clothing brands resulted in a 20% decline in inventory, impacting sales of key items.

• The exit from the fine jewelry business led to a sustained decline in sales, which the company now wants to reverse.

• Kohl’s Corp (NYSE:KSS) cut its full-year guidance and expects net sales to decline 7% to 8% compared to 2023.

Q: What measures are being taken to improve traffic trends in the fourth quarter and into 2025? A: Thomas Kingsbury, CEO, explained that showcasing great value on the sales floor and targeting the most engaged customers with more direct mail and targeted offers are important strategies. Additionally, they are leveraging social and digital marketing to drive new customer acquisition and take advantage of the 4 million new rewards members joining in 2024.

The story continues