Kohls expects that final, fully-funded bids from potential buyers will appear in the coming weeks as the retailer faces increasing pressure from activist shareholders to sell its business, sending the company’s shares to close 4.4% higher at $45.04 despite posting earnings far from Analysts forecasts for the first fiscal quarter and trimmed earnings and revenue expectations for the full year. Read more [Kohl’s Will Receive Takeover Bids From Hudson Bay & Sycamore].
Kohls joins a growing list of major retailers, including Walmart and Target, that have struggled with soaring logistics and hiring expenses that have hit their bottom line with inflation hitting a 40-year high. Faced with high prices. Read More [Walmart’s First-Quarter Results Hurt Costs and Supply Chains].
Kohls now expects to post adjusted earnings in fiscal 2022 of $6.45-6.85 per share compared to its previous forecast of $7.00-7.50 per share, and the retailer sees net sales (revenue) either stable or growing 1% from levels a year ago Note that the previous guidance was a growth between 2-3%.
Kohls posted net income of $14 million, or 11 cents per share, for the quarter ended April 30, compared to about $14 million, or 9 cents per share, a year earlier, but it fell short of analysts’ expectations of 70 cents per share. Sales fell from $3.89 billion a year ago to $3.72 billion, beating analyst estimates of $3.68 billion.
Kohl’s shares are down 9% year-to-date when factoring in their recent gains.