Kohl’s (NYSE:KSS) saw its shares drop on an update to consumers and investors related to the COVID-19 outbreak.
The home improvement chain, based in Menomonee Falls, Wisconsins is taking the following actions to manage through this evolving situation.
Effective tonight at 7:00 p.m. local time, Kohl’s will close its stores nationwide through at least April 1. Kohl’s will support store associates with two calendar weeks of pay. The Company continues to serve customers 24-hours a day through its digital platforms on Kohls.com and the Kohl’s App.
Given the uncertainty related to the COVID-19 impact on its business, including the duration and demand for the merchandise it sells, the Company is withdrawing the guidance it provided for the first quarter and full year 2020 that was issued on March 3.
In addition, as a precautionary measure, the Company is modifying its capital allocation plan for 2020, which includes decreasing its capital expenditures, temporarily suspending its share repurchases and evaluating its dividend program.
CEO Michelle Kass said, “The health and safety of our associates and customers is our top priority. As a result of the escalating COVID-19 pandemic, and to do our part in helping to slow the spread of the virus, we are closing our stores nationwide through at least April 1.
“We will continue to serve customers on Kohls.com and our Kohl’s App, and we look forward to reopening our stores soon to serve families across the country.”
KSS shares dipped 91 cents, or 5.3%, to $16.27