Kohl’s Shares Decline Following Disappointing 2025 Forecasts
Shares of Kohl’s Corporation (KSS) plunged sharply on Tuesday after the retailer’s projections for fiscal year 2025 fell well below analysts’ expectations. The company anticipates a challenging year ahead, which has resulted in increased pressure on its stock.
Fiscal 2025 Forecasts Falls Short
Kohl’s forecasts a decline in net sales ranging from 5% to 7% for fiscal 2025, along with comparable sales anticipated to drop between 4% and 6%. The company’s earnings per share (EPS) are expected to range from $0.10 to $0.60. In contrast, analysts had estimated a less severe net sales decline of approximately 2%, with EPS projections around $1.26, according to data from Visible Alpha.
Stock Performance Overview
As of Tuesday, Kohl’s shares have experienced a dramatic decline of around 55% over the past year. Recently, the stock dropped nearly 25%, reaching levels not seen since the 1990s.
Fourth Quarter Results Mixed
The company’s fourth-quarter performance ended with profits that disappointed analysts, resulting in EPS of $0.43 on total revenue of $5.4 billion. Notably, when adjusted for one-off costs, including store closures, Kohl’s reported an adjusted EPS of $0.95, surpassing estimates. Analysts had predicted an EPS of $0.71 and net revenue of $5.38 billion for the quarter. Last year, the retailer recorded a profit of $1.67 per share and sales of $5.96 billion.
Comparable Sales Performance
Kohl’s experienced a decline in comparable store sales by 6.7%, which, while disappointing, was slightly better than the anticipated 6.9% drop by analysts.
Leadership Changes and Strategic Direction
Earlier this year, Kohl’s announced a leadership transition, with Ashley Buchanan, previously CEO of craft store chain Michaels, stepping in to replace Tom Kingsbury. Buchanan is actively outlining a strategic plan aimed at revitalizing the brand and addressing current challenges.
This report incorporates updated share price information and contextual analysis surrounding Kohl’s current financial landscape.
