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Kohl’s Corporation (New York Stock Exchange: KSS) in early trading after posting better than first-quarter earnings and reaffirming previous guidance for the full year.
CEO Tom Kingsbury said KSS’s department store business posted productivity gains during the quarter and Sephora continued Kohl’s sales momentum.
The store operator reported that sales fell 3.3% during the quarter, to $3.4 billion. Comparable sales decreased by 4.3%.
Kohl’s (KSS) saw gross margin improve during the quarter as a percentage of net sales up 67 basis points, to 39.0%. Operating income was $98 million, compared to $82 million a year earlier. Operating cash flow was used – $202 million.
At the end of the quarter, Kohl’s (KSS) had an inventory position that was down 6% year-over-year at $3.5 billion.
Looking ahead, Kohl’s (KSS) reaffirmed guidance for 2024 net sales growth of -2% to -4% and an operating margin of approximately 4%. EPS is expected to be $2.10 to $2.70 for the full year versus $2.40.
Cole’s shares fell 10.48% in pre-market trading to $21.29.