Kohl's Q3 Sales Down

Third quarter sales at Kohl’s were down more than 5% as the retailer continues working to reposition the company for improved sales and earning performance in the coming year.

For the quarter ended October 28, net sales were $3.8 billion, a drop of 5.2% when compared to the same quarter the previous year. Comparable store sales were down 5.2%. Net income was $59 million, or $0.53 per diluted share. This compares to net income of $97 million, or $0.82 per diluted share in the prior year. Inventory declined 13%. 

“Kohl’s third quarter earnings reflect strong gross margin and expense management as well as additional progress against our strategic priorities,” said Tom Kingsbury, CEO of Kohl’s. “I am pleased with our store performance driven by strong growth in Sephora and the newness in our home and gifting initiatives. This reinforces our actions are working and resonating with our customers.”

For the first nine months of the year, net sales decreased 4.5% year-over-year, to $10.9 billion, with comparable sales down 5.0%. Net income was $131 million, or $1.18 per diluted share. This compares to net income of $254 million, or $2.02 per diluted share in the prior year.

For the full year 2023, the company is forecasting a net sales decrease of between 2.8% to 4%, which includes the impact of the 53rd week which is worth approximately 1% year-over-year. This compares to the Company’s prior guidance of a decrease of 2% to 4%.

“Our strategies to reposition Kohl’s for improved sales and earnings performance remain in the early stages,” Kingsbury said. “The work we have done in 2023 will continue to build momentum and set us up to be successful in 2024. I continue to be impressed with the entire Kohl’s team for their hard work and agility in executing against our strategic priorities in 2023.”