Kohl's stock plummets 20% after massive earnings miss

Core Insights - Kohl's shares fell over 20% in premarket trading after reporting a surprise loss per share of 24 cents, significantly below Wall Street's expectation of a profit of 4 cents [1] - The company reported a net loss of $27 million compared to a profit of $14 million in the same quarter last year [1] Financial Performance - Net sales decreased by 5.3% to $3.18 billion, with comparable sales down 4.4% [2] - The company lowered its 2024 guidance, now expecting full-year net sales to decline between 2% and 4%, contrasting with analysts' expectations of a 0.2% gain [2] - Full-year diluted earnings per share are now projected to be between $1.25 and $1.85, significantly lower than the expected $2.34 per share [2] Management Commentary - CEO Tom Kingsbury acknowledged the need for improvement in business areas and indicated a more conservative financial outlook due to first-quarter underperformance and consumer uncertainty [3] - Positive trends were noted in the women's category and growth in the Sephora shop-in-shop partnership [3] - The company plans to add Babies 'R' Us in-store locations to about 200 sites, indicating a focus on strategic partnerships for growth [3][4] Strategic Initiatives - The company maintains confidence in its growth strategy, emphasizing key initiatives such as Sephora, home decor, gifting, and the upcoming partnership with Babies 'R' Us [4]