Kohl's posts declines in 2Q profits and sales, joining other stores facing cautious spending
Kohl’s reported on Wednesday that profits dropped nearly 60% on weak sales in the second quarter, joining a slew of retailers that are wrestling with shoppers’ cautious spending in a challenging economy
NEW YORK — Kohl's reported on Wednesday that profits dropped nearly 60% on weak sales in the second quarter, joining a slew of retailers that are wrestling with shoppers' cautious spending in a challenging economy.
But Kohl's results beat Wall Street expectations as the retailer cut inventory and expenses. The department store chain also reaffirmed its annual guidance. Shares rose nearly 4% in mid-day trading.
Kohl's, based in Menomonee Falls, Wisconsin, is among the last group of retailers to report second-quarter results in an earnings season that has shown how still-high inflation, despite some easing, and higher interest rates are making shoppers cut back on discretionary items like clothing in order to afford their larger grocery bills.
It's a worrying sign as retailers head to the critical back half of the year, including the holiday shopping season.
Foot Locker said Wednesday it was cutting its full-year outlook again and pausing its quarterly dividend as sales dropped in its fiscal second quarter with consumers continuing to be more cautious about their purchases.
On Tuesday, Macy's said it was forced to discount its spring goods to make room for fall and holiday merchandise in the face of customers’ cautious spending. But the retailer’s adjusted second-quarter profits and sales still topped Wall Street expectations.
Nordstrom is slated to report its second-quarter results on Thursday.
Kohl's earned $58 million, or 52 cents per share, for the quarter ended July 29. That compares with $143 million, or $1.11 per
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