US department store chain Kohl's has reported that its net sales fell by 4.7% to $6.70bn in the first half (H1) of fiscal 2024 (FY24), compared to $7.03bn in H1 FY23.
The company also saw a 4.8% decrease in comparable sales.
During the period ending 3 August 2024, Kohl's net income plummeted to $39m from $72m in the first half of fiscal 2023.
Its earnings per diluted share (EPS) also dropped to $0.35 from $0.65 in the same period of the previous year, and operating income decreased to $209m from $261m in H1 FY23.
Despite the overall decline, Kohl's gross margin as a percentage of net sales improved slightly by 54 basis points to 39.6%.
The company’s selling, general and administrative expenses were down by 2.5% year-on-year to $2.5bn, but as a percentage of total revenue, these expenses increased by 78 basis points to 34.8%.
In the second quarter of the fiscal year, net sales decreased by 4.2% year-on-year to $3.5bn, with comparable sales down by 5.1%.
Net income for the quarter was $66m compared to $58m in Q2 FY23.
Its EPS for the quarter was $0.59 against $0.52 in the same quarter of the previous year.
The company’s operating income saw a slight increase to $166m from $163m, and as a percentage of total revenue, it rose by 26 basis points year-on-year to 4.4%.
Kohl's CEO Tom Kingsbury said: "We have taken significant action to reposition Kohl's for future growth. However, our efforts have yet to fully yield the intended outcome due in part to a continued challenging consumer environment and softness in our core business."
For the full year 2024, Kohl's anticipates net sales to decrease by between 4% and 6%, and comparable sales to drop by 3% to 5%.
The company expects diluted EPS to be in the range of $1.75 to $2.25.
Tom Kingsbury added: "Looking ahead, we are focused on ensuring that the substantial work that we’ve done across product, value and experience is fully recognised by both new and existing customers. Our conviction in our strategy remains strong and our operating discipline, solid cash flow generation and healthy balance sheet will continue to support us as we work to return Kohl's to growth."
