During a conference call to discuss the results of the first quarter merchant clothing and home goods Kohl’s Corp. (№ 21 y 2022 Digital Commerce 360 Top 1000 rating) reaffirmed its commitment to top initiatives. These include plans to expand amnicolence, open 100 smaller stores and deepen the “in-store” partnership with Sephora cosmetics retailers.
Kohl’s did not disclose how much online revenue for the first quarter compared to the same quarter last year. But Jill Tim, the chief financial officer, told investors during a conference call on Thursday that digital sales “were slightly above stores and accounted for 30% of net sales.”
Kohl’s first-quarter net sales were $ 3.47 billion for the quarter ended April 30, down 5.2% from $ 3.66 billion a year earlier. That means digital sales were about $ 1.04 billion in the first quarter of 2022.
Kohl’s comparative sales for the first quarter also fell 5.2% over the same period last year, according to the retailer. Comparative sales measure retail sales in stores and other sales channels that existed in the previous reporting period.
In addition, rising costs for freight, transportation and wages affected earnings last quarter, Kohl said.
Sales fell in April
Tim said the first quarter started strongly with comparable unambiguous interest rates until the end of March, but then in April sales “weakened significantly”. She attributes the weakening over the same period last year to last year’s federal stimulus payments to households that boosted demand and rising inflation over a year ago. The retailer said trends in May “improved markedly” as more favorable weather accelerates demand for spring goods.
The seller says he also plans to follow previously announced plans to add omnichannel to his options.
These plans include:
- By the end of 2022, self-service will be available in all stores
- Pilot self-service returns in 100 stores
- Self-service cash register testing
- Expanding the range of products available online
- Improving Kohl’s media network
The media network program allows brands to target Kohls.com shoppers online.
During a conversation Thursday, Kohl’s CEO Michelle Gus said that Kohl’s media network is “an opportunity over time in the hundreds of millions of dollars.”
A highlight of Kohl’s quarterly report was that 200 stores that include Sephora in Kohl’s stores, “delivered positive comparable in-store sales” in the first quarter, the statement said. Kohl’s says it plans to add Sephora stores to Kohl’s additional 400 stores by the end of 2022, which means that by then more than half of Kohl’s locations will have Sephora stores. The retailer is also planning add 100 smaller format stores over the next four years.
Credit card users get richer rewards
Earlier in May Kohl was reinforced his awards program therefore, buyers who use the seller’s credit card receive a 7.5% reward for each purchase. Previously, all Kohl’s Rewards participants received 5% of Kohl’s Rewards, regardless of the method of payment.
After testing advanced benefits in more than 100 stores in eight markets, Kohl’s changed the program nationwide. In the pilot markets, Kohl’s saw an increase in the number of rewards registered in the program, more purchases and use of Kohl’s Cards, as well as overall sales growth, according to the retailer.
The Koli Council is examining applications
Kohl is under pressure to show improvement after driving last week fought back a two-year push by the activist-investor to overhaul the board. On Thursday, a retail spokesman said his Goldman Sachs adviser had worked with more than 25 parties while continuing to consider strategic alternatives.
“Several participants were invited to the data room, which contains more than 550,000 pages of more than 55,000 documents, as well as a meeting with management. Despite the fact that preliminary proposals, which are not binding, have been received, further verification is underway, and the council has requested that the finalized applications be submitted in the coming weeks, ”Kohl said in a statement.
Operators of Simon Property Group and Brookfield Asset Management offered to buy Kohl’s retail store in a deal that will cost more than $ 8.6 billion, the New York Post reported on April 25.
Simon and Brookfield who bought a competing chain of department stores JCPenney due to bankruptcy, offered $ 68 per share, according to the Post. An unnamed source told The Post that the buyout plan calls for the preservation of two separate brands while creating a single management team. streamlining operations and reducing costs.
Kohl’s updated its financial forecast for 2022:
- Net sales growth is expected to be in the range of 0% to 1% over the previous year. In March, Kohl forecast growth of 2-3% over last year.
- It is now expected that the operating margin will be in the range of 7.0% to 7.2% compared to the previous forecast of 7.2% to 7.5%.
- Earnings per share are now expected to range from $ 6.45 to $ 6.85 excluding any one-time payments. The March forecast ranged from $ 7.00 to $ 7.50 excluding one-time payments.
Kohl sells online at Kohls.com and operates more than 1,100 stores in 49 states.
For the quarter ending April 30, Kohl said:
- Net sales for the quarter were $ 3.47 billion, down 5.2% from $ 3.66 billion a year earlier.
- Total revenue was $ 3.72 billion, down 4.4% from $ 3.89 billion in the quarter last year.
- Sales and administrative expenses were $ 1.29 billion, up 10.5% from $ 117 billion in the first quarter of 2021.
Changes in percentages may not match dollar figures due to rounding.
Paul Conley and Bloomberg News contributed to this report.
Stay up to date with the latest developments in the e-commerce industry. Sign up for a free subscription at Digital Commerce 360 Retail News.
https://www.digitalcommerce360.com/2022/05/20/online-orders-represent-30-of-q1-sales-at-kohls/ Online orders accounted for 30% of Kohl’s first quarter sales