A view outside a Kohl’s store on July 16, 2020 in Miramar, Florida.
Johnny Louis | Getty Images
Kohl’s revenue fell 23% during the fiscal second quarter, the retailer said Tuesday, which was not as bad as analysts feared as the coronavirus pandemic forced stores to close in the US and many shoppers stayed home.
Instead, dollars differed online, and Kohl’s digital sales increased 58% compared to a year ago. Shoppers stock up on workout gear, pajamas, toys and cozy clothing. The online business made 41% of total sales in the quarter, the company said, compared to 20% a year earlier.
Kohl’s shares jumped more than 4% in premium trading on the news.
Here’s how the retailer performed in the fiscal second quarter ended August 1 compared to what analysts expected, based on Refinitv data:
- Custom EPS: a loss of 25 cents vs. a loss of 83 cents, expected
- Turnover: $ 3.21 billion vs. $ 3.09 billion, expected
“Looking ahead, we expect the crisis to continue to affect our business in the long term,” Chief Executive Michelle Gass said in a statement. “We are well positioned to capitalize on the evolving customer behavior and the disruption of retail, which we believe will drive long-term growth and drive increased market share.”
Kohl’s net income fell 80% to $ 47 million, or 30 cents a share, from $ 241 million, to $ 1.51 a share, a year ago.
Except for one-time charges, the retailer lost 25 cents a share, which was better than the 83 cents loss forecast by analysts.
Net sales fell to $ 3.21 billion from $ 4.17 billion. That was better than the $ 3.09 billion expected by analysts.
Kohl’s did not report sales of the same store, which follows revenue at stores that have been open for at least 12 months, due to the pandemic.
It’s gross profit margin shrank to 33.1% from 38.8% a year ago, due to increased shipping costs for online orders and increased promotions, the company said.
Kohl’s, which was forced to close stores temporarily with other retailers in the quarter to try to help curb the spread of Covid-19, said it has since reopened all locations “with new security procedures and governance, accelerating digital growth, and demonstrating tremendous discipline in managing inventory and spending significantly lower. ”
It ended the second quarter with $ 2.4 billion in cash on hand, and $ 500 million in availability on its credit revolver, it said.
Looking ahead, the retailer said it expects shoppers will start shopping for the holidays earlier this year because of the pandemic and the uncertainty it brings with it.
“We will therefore meet their needs,” the company said.
Kohl’s shares have fallen nearly 54% so far this year as of Monday’s market. The company has a market cap of $ 3.7 billion.
Find the full press release here.
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