Kohl’s Corp.’s stock plunged 19% in early trading as the retailer’s turnaround struggles to gain traction.
Reuters
Comparable sales this year will drop as much as 6%, the retailer said on Tuesday. Analysts projected a decline of 0.55% on average.
The company, which had already seen its shares fall 14% this year, has been making sweeping changes in an attempt to get back on track after three years of declining sales. Kohl’s recruited Ashley Buchanan from Michaels Cos. to become chief executive officer beginning in January. The retailer is also cutting 10% of roles reporting to its corporate office.
The retailer said it has identified key areas of focus, including regaining traction in categories such as fine jewelry, and is taking action this year to reposition Kohl’s.
Kohl’s is the latest US retailer to disappoint investors with a weak outlook. The softness has spanned from Walmart Inc. to Abercrombie & Fitch Co.
The sector is dealing with the uncertainty of President Donald Trump’s trade war and consumers who are increasingly cautious. Target Corp. and Best Buy Co. said that that they may have to raise prices, warning of various degrees of uncertainty alongside Macy’s Inc. and Victoria’s Secret & Co.
To improve results, Kohl’s has leaned into partnerships in a bid to boost store visits. Last year, the retailer announced plans to open Babies “R” Us shops in some locations. The retailer also has a deal with Sephora to put outposts of the makeup chain within some of its stores.
