Kohl's vows 'aggressive action' to reverse sliding sales following a 'frankly disappointing' quarter

Core Insights - Kohl's reported a significant decline in comparable sales, dropping 9.3% in the third quarter, which CEO Tom Kingsbury described as "frankly disappointing" despite efforts to enhance products and in-store experiences [2][5] - The company experienced a net income decrease to $22 million for the third quarter, down from $59 million in the same period last year [4] - Full-year comparable sales are now expected to be 6% to 7% lower compared to 2023, leading to a 17% drop in shares on a recent trading day, with a total decline of 45% for the year, valuing the company at less than $1.6 billion [5] Sales Performance - Sales in apparel and footwear remained weak, although categories like Sephora, home decor, gifting, and impulse items showed strong performance [3][8] - The partnership with Sephora, which has about 1,050 concessions in Kohl's locations, resulted in a 15% increase in total beauty sales for the quarter, but also led to missed opportunities in other categories like fine jewelry [6][8] Strategic Challenges - The decision to focus on Sephora led to a 20% drop in inventory for private brands, which negatively impacted Kohl's ability to serve customers [6] - The fine jewelry business was largely displaced by the introduction of Sephora Shops, creating a persistent headwind for sales performance [7][9]