Kohl’s Corp (NYSE:KSS) shares are plunging in premarket on Tuesday after the fourth-quarter FY24 earnings results.
The company reported a fourth-quarter sales decline of 9.4% year-on-year to $5.175 billion, beating the analyst consensus estimate of $5.145 billion.
Comparable sales for the quarter decreased 6.7%. Gross margin for the quarter expanded by 49 basis points to 32.9%.
Operating income for the quarter was $126 million versus $299 million last year. The operating margin compressed 270 basis points to 2.3%.
Selling, general and administrative expenses decreased 4.5% Y/Y to $1.5 billion. Adjusted EPS of $0.95 beat the consensus estimate of $0.73.
Also Read: Retailer Wayfair Restructures Technology Team, Cuts 340 Jobs
Kohl’s held $134 million in cash and equivalents as of February 1, 2025. Operating cash flow was $596 million in the quarter. Inventory at the end of the quarter was $2.9 billion, a 2% increase Y/Y.
Kohl’s Board of Directors declared a quarterly cash dividend on the company’s common stock of $0.125 per share. The dividend is payable on April 2 to shareholders of record at the close of business on March 21.
The quarterly dividend is being lowered from $0.50 paid last quarter.
Outlook: Kohl’s expects FY25 sales decline of 5% – 7%. It expects FY25 EPS of $0.10 – $0.60 versus the Street view of $1.25.
Kohl’s anticipates FY25 comparable sales to decrease 4% – 6%. Kohl’s expects an FY25 operating margin of 2.2% – 2.6% and capital expenditures of about $400 million – $425 million.
Price Action: KSS shares trading lower by 16.2% at $10.10 in premarket at last check Tuesday.
Read Next:
Photo: Sundry Photos via Shutterstock.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.