Kohl’s (NYSE: KSS) announced Tuesday that its revenue plummeted 23% throughout the second quarter. However the downfall was not as brutal as analysts had anticipated amid the repercussions of the coronavirus pandemic. Shares fell approximately 14% following the quarterly report.
Retailers such as Home Depot and Walmart, that were identified as essential, had the ability to remain open and reported roaring sales for the quarter. However, Kohls and other non essential businesses have had to restructure their sales model in order to operate.
Despite the strain, the retailers online sales surged 58% in comparison to the previous year. Customers bought out items such as workout gear, pajamas, toys and comfortable clothing. The company revealed its online platform brought in 41% of overall sales for the quarter, versus the 20% it amounted to last year.
“As we look ahead, we are planning for the crisis to continue to impact our business in the near-term,” Chief Executive Michelle Gass said in a statement.
Furthermore, in a conference call, Gass said the company is preparing “conservatively” for what’s left of 2020. Management revealed that the back-to-school period at Kohl’s had been “soft,” as parents remain unaware of how the school year will pan out.
Kohl’s reported an adjusted EPS loss of USD.25 in comparison to the USD.83 anticipated by experts. Revenue amounted to USD3.21 Billion compared to the expected USD3.09 Billion. The retailer’s net income dropped 80% to USD47 Million, or USD.30 a share, from last year’s USD241 Million, or USD1.51 per share.
“Fortunately, good financial management has provided Kohl’s with strong liquidity,” GlobalData Retail Managing Director Neil Saunders said.
“We are modestly more optimistic about Kohl’s,” he continued. “The location of its shops is more favorable and, already, foot traffic to uncovered shopping centers has come back faster than it has to traditional malls.”