US-based department store chain Kohl’s has reported full-year net sales of $17.2bn for fiscal 2022 (FY22), down by 7.1% from fiscal 2021 (FY21).

During the year, the company’s gross margin as a percentage of its net sales decreased by 485 basis points (bps) to 33.2%.

Kohl’s’ operating income for FY22 was $246m, down from $1.7bn in FY21.

The retailer’s operating income as a percentage of its total revenue declined by 729bps to 1.4%.

Its net loss for the year was $19m, against a net income of $938m in FY21.

Kohl’s reported a loss of $0.15 for each diluted share in FY22, compared to earnings of $6.32 to a diluted share in the previous year.

In the fourth quarter (Q4) of FY22, the company’s net sales dropped by 7.2% to $5.8bn, affected by a comparable sales decline of 6.6%.

In the quarter, Kohl’s posted an operating loss of $302m, against an operating income of $450m in Q4 2021.

The retailer had a net loss of $273m for Q4, compared to a net income of $299m in the prior-year period.

Kohl’s CEO Tom Kingsbury said: “Kohl’s fourth-quarter results reflect meaningful proactive measures we took to better position the business for 2023, as well as sales pressure driven by the ongoing persistent inflationary environment.

“Kohl’s has a solid foundation and a highly motivated team with a set of priorities to capitalise on what I see as a substantial opportunity to make a difference in the retail landscape.

“Our efforts to drive the business are already underway. We are refining our strategy and re-establishing merchandise disciplines with a customer-centric focus across the organisation.

“I am confident that our efforts will drive improved, and more consistent, sales and earnings performance over the long-term.”

For fiscal 2023, Kohl’s expects its net sales to decrease by 2-4% and has forecast earnings of $2.10 to $2.70 for each share.