Menomonee Falls-based retailer Kohl’s Corp. on Wednesday reported lower sales and net income for the second quarter and the first half of fiscal 2023.
The company’s net income for the second quarter was $58 million, or 52 cents per diluted share, a 59.4% drop from net income of $143 million, or $1.11 per diluted share, during the second quarter of last year.
For the first half of the year, Kohl’s reported net income of $72 million, or 65 cents per diluted share, down 54.1% from $157 million, or $1.22 per diluted share, during the first half of the 2022 fiscal year.
Net sales fell 4.8% from $3.9 billion in the second quarter of 2022 to $3.7 billion during this year’s second quarter. For the first half of the fiscal year, the company’s sales were down 4.1% to $7 billion, compared to $7.3 billion for the first half of the 2022 fiscal year.
Despite those declining results, Kohl’s chief executive officer Tom Kingsbury, who was permanently named to the post earlier this year, said they were in line with the company’s expectations.
“We maintained strong sales momentum in Sephora at Kohl’s, reduced inventory by 14%, and managed expenses tightly. Further, solid cash flow generation allowed us to reduce our borrowings in the period,” he said. “Many of our strategic efforts are just underway, which we expect will contribute incrementally in the back half of the year, and even more so in 2024 and beyond. We have enhanced the store experience and recently opened an additional 200 Sephora at Kohl’s shops, and are taking steps to further optimize our assortment and simplify our value strategies. Looking ahead, we are reaffirming our 2023 guidance and remain confident in our longer-term opportunity.”
Kohl’s has 1,100 stores in 49 states.
