Kohl’s Corp.’s stock is in the red in Thursday premarket trading after the retailer reported dismal holiday revenues.
The Menomonee Falls, Wis.-based company announced that same-store sales for the months of November and December dropped 0.2% from the previous year. Its shares were down 8.3% to $45.30, as of 9:00 a.m. ET.
“We continue to see momentum in key areas, including our digital business, active, beauty and children’s, and solid performance in footwear and men’s,” CEO Michelle Gass said in a statement. “This was offset by softness in women’s, which we are working with speed to address.”
During the third quarter, Kohl’s posted adjusted diluted earnings per share of 74 cents, well below Wall Street’s forecast of 86 cents. Profits dropped to $123 million, compared with $161 million the previous year. Same-store sales, which grew 2.5% in the same period the year before, increased slightly by 0.4% in Q3, versus expected growth of 0.8%.
Based on its soft holiday performance, the department store chain now expects full-year diluted earnings per share to be at the low end of the previously announced range of $4.75 to $4.95.
“As we look ahead, we are committed to driving innovation and bringing new experiences to both our existing and new customers,” Gass added.
In recent months, Kohl’s has made efforts to meet shifting consumer tastes, such as housing products from smaller, niche labels at 50 of its 1,200 stores through the Curated by Kohl’s program that rolled out in mid-October. It has also worked toward building on partnerships with big-name corporations — including Amazon over the summer — to woo millennial and Generation Z shoppers.
Over the past year, Kohl’s stock has declined roughly 29%. The firm is scheduled to post fourth-quarter earnings on March 3 and will host an investor day on March 16 in New York City.
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