Kohl's has soft holiday season, accessories weak but footwear strong

By

Obi Anyanwu

Published
Jan 5, 2017

Kohl’s on Wednesday reported the sales for its November and December 2016 combined period. Comparable sales decreased 2.1% in the period and total sales fell 2.7%.
 

The Men’s, Home and Footwear categories performed the best for Kohl’s in the period while the Accessories segment was most challenging, and the Southeast, Mid-Atlantic and Northeast regions performed best for the company.
 
“Sales were volatile throughout the holiday season. Strong sales on Black Friday and during the week before Christmas were offset by softness in early November and December,” said Kevin Mansell, Kohl's chairman, chief executive officer and president.

Kohl’s reduced its fiscal 2016 guidance following the holiday season and now expects diluted earnings per share to range from $2.92 to $2.97 versus its previous guidance of $3.12 to $3.32 per diluted share. Gross margin is also projected to be lower for the year, and expectations for the SG&A expenses for the year remain the same. The updated guidance is a result of lower than planned sales for the quarter.