Kohl was lower than forecast sales on Tuesday, and its new CEO warned that the turnaround would take “a certain time.”
The decline in stocks has gotten back on track to the lowest range since the mid-1990s as investors panicked that slower spending could hit sector chains twice as hard as they were hit by growing trade tensions.
Kohl's says it expects sales to fall on a comparable basis in 2025 from 5% to 7% and 4% to 6%, adjusting store openings and closures.
Retailers are forecasting revenues of 10-60 cents per share for 2025.
Analysts voted by FactSet predict that sales declines will be less than 1%, with retailers forecasting revenues reaching at least $1 per share.
Cole's new CEO, Ashley Buchanan, has rarely mitigated investors' fears with a return call.
The company is trying to add new, affordable products to its shelves this year, she said.
Buchanan also hopes that after reducing the store selection for the Sephora shop, Cole will regain demands that it was lost in the fantastic jewelry category. That is, it overturns the damages caused by her predecessor. Kohl's continues to implement Sephora Shops in its stores this year, she said.
However, game plans are unlikely to alleviate investors' fears as Tuesday's disappointing forecast continues to slow sales in months.
Kohl reported a plunge sales during last year's crucial back to school season, and then the CEO suddenly quit a few days before the Black Friday kickoff, days before holiday shopping.
Former Michaels and Walmart executive Buchanan took on the role in January, despite a few small results.
That same month, she led a round of layoffs, cutting Cole's corporate workers by 10%.
Coles said Tuesday it is continuing its cost-cutting campaign by reducing its quarterly dividends to 12.5 cents per share and 12.5 cents per share for its next payment on April 2nd.
In the quarter ended February 1, Cole reported profits of $48 million, or 43 cents per share. That's $186 million, or $1.67, from the same period last year.
Revenue fell 9.4% to $5.188 billion, in line with analyst estimates. Equivalent sales fell 6.5%.
Kohl reported adjusted earnings per share of 95 cents per share, surpassing analysts' expectations of 73 cents per share.
