- Cole The profit report was the first since the shooting of the CEO of Ashley Buchaanan, and the results were not as bad as expected. While net sales have decreased and there are still losses to the share, it was not as expected as Wall Street. The retail seller also has a three -sided approach to return.
Kohl’s has spent a harsh year – but it may show signs of a shift.
On Thursday, the retail dealer reported the results of the Q1 2025, which was not bad like investors who expect him to a loss of 13 cents per share; Wall Street’s expectations were a loss of 25 cents per share. However, net sales decreased by 4.1 % from the previous year to $ 3.05 billion – but that was also better than the expectations of analysts of $ 3.02 billion. Similar store sales decreased by 3.9 %, according to the company Profit report.
Kohl shares were trading more than 3 % on Thursday morning, but their shares still decreased more than 40 % on an annual basis.
This is Kohl’s first profit report I launched CEO Ashley Boucanan Earlier this month to violate the company’s policies by directing the company to participate in the transactions of sellers, which included “unknown conflicts of interests” after the investigation conducted by an external advisor. It was later reported Wall Street Magazine The deal included a woman who had a romantic relationship with her.
Michael Bandar He works as a temporary executive as Cole finds a permanent alternative. He has been on the Kohl Board of Directors since 2019, and has previously worked as the Chairman and CEO of Eyemart Express.
“I want to realize that there was a lot of change in the past year, especially in the past few weeks,” Bandar said during the company’s profit call in the first quarter of 2025 on Thursday. “Although change may be difficult, it also represents an opportunity to re -evaluate and adhere to the path forward.”
During the past year, Kohl’s has also reduced its size, as it closed about twenty stores in 15 states and was also made. Corporate layoffs. Moreover – the loss of the new CEO after only 100 days in his post – Kohl’s is still compensating for mistakes from former executives. Tom Kingsbury, who served as CEO against Bokanan, chose Colls to carry less stock, which ended, which affects the work. Kingsbury admitted its fall, such as getting rid of the home and shrinking the company’s luxury business, describing its “Qasr’s” choices.
“We have thought,” we can do much more than that, and this did not work for us. “Kingsbury said during the call of analysts in December 2024.”
Now, Kohl’s has been clarified for three areas of focus: coordinating a variety of products that are most balanced for customers, re -establishing the company as a leader in value and quality, and re -its wonderful business, the financial manager of Kohl ‘said Tim generation During the profit call.
“The most famous area that we correct is our jewelry business, which we have displaced while distributing Sephora In our stores, Tim said: “This was a group that has been greatly hacked by the most loyal KoHL Card customers.”
Timm added that the company launched 200 jewelry stores in its stores in the fall. Meanwhile, Kohl’s also focuses on improving the more women’s clothing assortment and investing in Sephora stores, which have been reported to net 6 % sales in the last quarter.
The other main focus of Kohl this year is to double the value. Since the customs tariff affected the feeling of consumers in all fields, the company is trying to take into account the customer’s interview where they are-especially because most of the Kohl customer base are consumers with medium income.
Bandar said during the profit call: “There are kitchen table conversations that occur throughout America every day. People are trying to know how to understand the dollars they have to spend, and they give priority to the place they want to put.” “The important thing is to make sure that we are about to be inside their heads, understand what their needs are and meet those needs.”
To this end, Timm said that Kohl’s is the definitions by diversifying the countries they use for production.
Tim said: “Although the customs tariff remains an uncertain position, the teams continue to work to reduce our exposure to the countries with a higher conflict … (and) to control requests based on an analysis of pricing flexibility.”
But while Kohl is doing its best, executive managers still admit that it is a tremendous time to retail stores.
Bandar said: “We are in the middle of the transformation, and in the early days – largely – and therefore it will take some time until we return to that,” Bandar said. “But the bottom line is that we are trying to align business to meet the needs of our customers.”
This story was originally shown on Fortune.com
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