Kohl’s(KSS) - 2025 Q1 - Quarterly Results

Sales Performance - Net sales decreased 5.3% year-over-year to $3.2 billion, with comparable sales down 4.4%[4][5] - Regular price sales increased 2.4%, but clearance sales impacted overall comparable sales by more than 600 basis points[3][4] Profitability and Margins - Gross margin increased by 48 basis points to 39.5% of net sales[4][5] - Operating income decreased to$ 43 million, down from $98 million in the prior year, representing 1.3% of total revenue[5] - Diluted loss per share was$ 0.24, compared to net income of $0.13 per diluted share in the prior year[4][5] Expenses and Costs - Selling, general & administrative (SG&A) expenses decreased 0.8% year-over-year to$ 1.2 billion, but increased as a percentage of total revenue to 36.3%[5] Inventory Management - Inventory declined 13% year-over-year to $3.1 billion[4][5] Financial Outlook and Strategy - The company updated its full-year 2024 financial outlook, expecting net sales to decrease between 2% and 4%, and comparable sales to decrease between 1% and 3%[5] - Capital expenditures for 2024 are expected to be approximately$ 500 million, including expansion of the Sephora partnership and other store-related investments[5] - The company plans to return capital to shareholders through dividends and strengthen its balance sheet by reducing long-term debt in 2024[4]