Kohl’s cuts annual forecast, as it gets stung with inflation

Kohl’s Corp. cut its annual earnings and sales forecast, as the department store chain joins a string of retailers stung with soaring inflation.

The reduction, announced Thursday, came as it reported fiscal first-quarter results that came below analysts’ expectations. Sales at stores opened at least a year, a key measure, dropped 5.2% as shoppers scrutinized their purchases.

Like many department stores, Kohl’s had struggled before the pandemic, but the health crisis wielded a big blow to sales. The Menomonee Falls, Wisconsin-based company’s business was rebounding as customers were going out to social events and buying dressier clothes. But like other stores, it’s now grappling with supply chain issues and surging inflation that are causing pain to its business. Moreover, shoppers, facing with higher costs on everything from gas to milk, are rethinking their purchases.

The Menomonee Falls, Wisconsin-based company said that it earned $14 million, or 11 cents per share.

The results missed Wall Street expectations. The average estimate of six analysts surveyed by Zacks Investment Research was for earnings of 75 cents per share.

The department store operator posted revenue of $3.72 billion in the period, which also did not meet Street forecasts. Three analysts surveyed by Zacks expected $3.85 billion.