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(Reuters) -Kohl’s Corp forecast a bigger-than-anticipated drop in annual sales and expects profit below Wall Street estimates on Tuesday, as the U.S. department store chain grapples with uneven demand amid a turnaround under its new CEO.
Shares of the apparel retailer tumbled 17% in premarket trading as it also posted a steeper-than-expected fall in holiday-quarter comparable sales.
New boss Ashley Buchanan has rolled out layoffs and store closures since taking the helm in January as he looks to revive the company.
Kohl’s joins larger rival Macy’s and big-box retailers Walmart and Target in tempering expectations as U.S. inflation risks rise and recession fears mount amid a chaotic implementation of President Donald Trump’s tariffs.
The uncertainty adds to Kohl’s woes as sales have been under pressure over the last three years as consumers turned to cheaper options at discount retailers including TJ Maxx parent TJX Cos.
The company has also suffered from its own missteps including its prior exit from fine jewelry to prioritize opening Sephora shops.
Sharp inventory reduction in private-label clothing also impacted sales in women’s and kids apparel in 2024 as value-focused shoppers chose rival retailers.
The Menomonee Falls, Wisconsin-based company expects 2025 comparable sales to decline 4% to 6%, compared with estimates for a 0.9% drop, according to data compiled by LSEG.
Earnings per share is projected in the range of 10 cents to 60 cents, compared to estimates of $1.23.
Its fourth-quarter same-store sales fell 6.7%, compared with estimates of a 6.2% drop.
(Reporting by Savyata Mishra and Aamir Sohail in Bengaluru; Editing by Sriraj Kalluvila)
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