Kohl’s sales declines are abating after back-to-school hit

Kohl’s Corp. reported third- quarter sales that fell short of analysts’ expectations, illustrating the deepening divide between essential and nonessential retail.

Same- store sales, a critical gauge of the sector’s performance, fell 13.3% in the quarter ended Oct. 31, slightly worse than the estimate for a decline of 12.3% from Consensus Metrix. Net sales fell 13% to $3.78 billion, also shy of expectations, a sign the chain is still struggling with the rapid changes of 2020 that have seen consumers retrench and buy less clothing.

But the outlook is improving at the department-store chain. Chief Executive Officer Michelle Gass said on a conference call that sales rebounded in September and October after the pandemic hit back-to-school sales, and executives are hoping the trend will continue through the vital holiday shopping season.