Customers leave a Kohl’s store on November 12, 2015 in San Rafael, California.
Justin Sullivan | Getty Images News | Getty Images
Kohl’s net sales tanked 43.5% during the first quarter, the company said Tuesday, as its stores were forced temporarily shut due to the Covid-19 crisis.
“We entered the year in a strong financial position and our business was tracking to our expectations prior to the onset of the crisis,” Chief Executive Officer Michelle Gass said in a statement.
The company’s shares fell as much as 3%, before climbing 1% in premarket trading on the news.
Here’s how the company did during its fiscal first quarter, ended May 2:
- Earnings per share, adjusted: A loss of $3.20
- Revenue: $2.16 billion
Kohl’s net sales fell to $2.16 billion from $3.82 billion a year ago.
The retailer reported a net loss of $541 million, or $3.50 per share, compared with a profit of $62 million, or 38 cents per a share, a year prior. Excluding one-time charges, Kohl’s lost $3.20 per share.
The company said it will not be reporting its same-store sales results for the quarter due to its shops being forced shut. Analysts had been calling for a decline of nearly 31%, according to FactSet.
Meantime, analysts had been calling for the retailer to report a loss of $1.80 per share, adjusted, on revenue of $2.18 billion, according to Refinitiv data. However, it is difficult to compare reported earnings with analyst estimates for Kohl’s first quarter, as the coronavirus pandemic continues to hit global economies and makes earnings impact difficult to assess.
Kohl’s said Tuesday that about half of its more than 1,160 stores across the U.S. have already been reopened for business.
The company ended the quarter with $2 billion in cash on hand and $500 million available on its revolving credit facility.
Its gross margins during the period fell to 17.3% from 36.8% a year ago.
“We know this experience will have a lasting impact to customer behavior and the retail landscape,” Gass said about the pandemic.
Kohl’s shares as of Monday’s market close are down 63% this year. The retailer has a market cap of $2.9 billion.