Kohl's Shares Plunge on Quarterly Loss and Reduced Annual Forecast

Kohl's has reduced its annual sales and profit forecast due to decreased consumer demand, resulting in a 15% drop in its shares. The retailer now expects fiscal 2024 net sales to fall between 2% and 4%, compared to its previous forecast of between a 1% drop and a 1% rise. The company also anticipates annual earnings per share in the range of $1.25 and $1.85, down from its previous forecast of $2.10 to $2.70.

The decline in consumer demand is attributed to several factors, including the resumption of student loan repayments, dwindling pandemic-era savings, and higher interest rates. These economic pressures have led consumers to prioritize essential purchases over non-essential items like apparel and footwear, affecting Kohl's sales. The company's CEO, Tom Kingsbury, indicated that the financial outlook for the year is being approached more conservatively due to the underperformance in the first quarter and ongoing uncertainty in the consumer environment.