Kohl’s makes progress in Q3 despite sales, profit declines

Core Insights - Kohl's executives expressed optimism despite declines in Q3, with CEO Michael Bender highlighting progress made during his tenure [3][5] - The company is addressing longstanding issues and reversing unsuccessful turnaround initiatives, including expanding private labels and adjusting brand policies [4] Financial Performance - Q3 net sales decreased nearly 3% year over year to $3.4 billion, with comparable sales down 1.7% [8] - Gross margin improved by 51 basis points to 39.6%, while inventory decreased by 5% to $3.9 billion [8] - Net income fell 64% to $8 million [8] Future Outlook - Kohl's upgraded its full-year net sales forecast, now expecting a decline of 3.5% to 4% and comparable sales to fall 2.5% to 3% [6] - Operating margin is projected to grow to 3.1% to 3.2%, an increase from the previous estimate of 2.5% to 2.7% [6] - Analysts noted that while revenue and profitability trends remain negative, the rate of decline is slowing, and the company has raised its guidance for the year [7]