Kohl’s Corp., the Menomonee Falls-based department store chain, reported a disappointing third quarter with net sales and comparable sales falling 8.8% and 9.3%, respectively, compared to last year. Outgoing CEO Tom Kingsbury attributed the decline to sales pressure, particularly in its core apparel business.
The company has struggled to boost sales since the start of fiscal 2024, despite initially projecting a modest increase. Instead, it now expects net sales to decrease by 7% to 8%, and comparable sales to drop by 6% to 7%. The decline is largely due to underperformance in its apparel and footwear businesses.
Kingsbury highlighted three key drivers of the decline: reduced store traffic during back-to-school season, lower sales of private-label apparel brands, and declining popularity of certain categories. He acknowledged that balancing growth initiatives with core business management will be crucial.
Ashley Buchanan, Michaels CEO since 2020, will succeed Kingsbury as Kohl’s CEO on January 15. The board praises Buchanan’s retail experience, which includes leading operations, merchandising, and e-commerce at Walmart and Sam’s Club. They expect him to drive growth and bring a new perspective to the company.
Kohl’s shares have fallen 8.1% since Monday’s close, trading at around $15.40 as of Tuesday afternoon.
Source: https://biztimes.com