Kohl’s (NYSE:KSS) on Tuesday reported a 13.3% decline in quarterly net sales, as the coronavirus pandemic limited the number of people visiting its stores to buy clothes, shoes and beauty items.
Still, CEO Michelle Gass said the results exceeded Kohl’s internal expectations, thanks to robust digital sales growth.
Kohl’s is entering the holidays “well-positioned” to rival its peers and take advantage of the market share up for grabs in the wake of numerous retail bankruptcies and store closures this year, Gass said. The retailer significantly cut its inventories during the latest quarter, putting it in a position where it will be less reliant on discounts during the holiday season.
For the quarter ended Oct. 31, the company reported a net loss of $12 million, or eight cents per share, compared with net income of $123 million, or 78 cents per share, a year ago. Excluding one-time charges, Kohl’s earned a penny a share, better than the 43-cent loss expected by analysts.
Kohl’s net sales fell to $3.78 billion from $4.36 billion a year ago. Analysts were calling for $3.86 billion, according to Refinitiv estimates.
Total revenue dropped 14% to $3.98 billion from $4.63 billion a year earlier.
Same-store sales at Kohl’s, which track sales online and at Kohl’s stores open for at least 12 months, also fell 13.3%. Analysts, on average, were calling for an 11.39% decline.
But the company said it did report positive sales growth in three categories — athleisure, lounge and sleepwear — which it has been investing in heavily.
KSS shares fell 24 cents to $25.91.