Kohl’s on Tuesday lowered the top end of its annual sales forecast and said it would be aggressive with promotions in the crucial holiday season as cost-conscious shoppers spend less at its department stores, reports Reuters. Kohl’s now expects annual sales to fall between 2.8 percent and 4 percent, against its previous projection for a 2 percent to 4 percent drop. Shares tumbled 11 percent on Tuesday.
Kohl’s also announced in a Securities and Exchange Commission filing on Friday that Dave Alves, president and chief operating officer (COO), has left the company after only six months on the job. Alves was appointed in February and started in April. Kohl’s doesn’t plan to refill the position.
Total Retail’s Take: Kohl’s third quarter fiscal results show net sales fell 5.2 percent year-over-year to $3.8 billion. While overall comps were down more than 5 percent, store comps in Q3 fell just 1 percent and were up slightly year to date. “I’m pleased with our store performance driven by strong growth in Sephora and the newness in our home and gifting initiatives,” CEO Tom Kingsbury commented in a press release. Kohl’s seems to be shifting its strategy back to focus on its 1,100 department stores, and will push less in its e-commerce efforts.
With the departure of its COO and no plans to fill the position, stores and supply chain teams will report directly to the CEO. In September, Kohl’s appointed retail veteran Fred Hand to the position of senior executive vice president and director of stores, focused on driving brick-and-mortar sales growth.
“Our strategies to reposition Kohl’s for improved sales and earnings performance remain in the early stages,” Kingsbury continued. “The work we’ve done in 2023 will continue to build momentum and set us up to be successful in 2024.”