It was a challenging second quarter for Kohl’s as the retailer reported a drop in sales as inflationary concerns slowed consumer spending.
For the quarter ending July 30, total revenue was $4.1 billion, down 8.1% from revenue of $4.4 billion in the second quarter of 2021. Net income was $143 million, down 63% from the previous quarter. Comparable store sales were down 7.7%.
“Second quarter results were impacted by a weakening macro environment, high inflation and dampened consumer spending, which especially pressured our middle-income customers,” said Michelle Gass, CEO of Kohl’s. “We have adjusted our plans, implementing actions to reduce inventory and lower expenses to account for a softer demand outlook.”
Gass said the company continues moving forward with its transformation plans, noting “outsized performance” in the nearly 600 stores that have been refreshed. Additionally, the retailer announced plans to expand the presence of Sephora to Kohl’s more than 1,100 locations.
Following the announcement of second quarter results, Kohl’s has updated its full year financial outlook. The company now anticipates net sales for the year to decline between (5%( and (6%).
“While 2022 has turned out to be more challenging than initially expected, Kohl’s remains a financially strong company with significant long-term growth potential,” Gass said. “Our $500 million accelerated share repurchase underscores our steadfast confidence in Kohl’s future and focus on creating shareholder value.