US-based department store chain Kohl’s has recorded revenue of $3.71bn in the first quarter (Q1) of the fiscal year 2022 (FY22), down by 4.4% against $3.88bn in the same period of FY21.

During the three months to 30 April, the company’s net sales and comparable sales were $3.7bn, down by 5.2% from $3.9bn a year earlier.

Kohl’s Q1 gross margin was 38.3%, dropping by 69 basis points (bps) from the same period of last year, when it recorded 39.0%.

The retailer’s net income remained unchanged at $14m, while its diluted earnings per share (EPS) grew by 22% to $0.11 compared with $0.09 in Q1 2022.

For the full year, Kohl’s expects net sales in the range of 0% to 1% and an operating margin of between 7.0% and 7.2%.

Kohl’s CEO Michelle Gass said: “The year has started out below our expectations.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

“Following a strong start to the quarter with positive low-single digits comps through late March, sales considerably weakened in April as we encountered macro headwinds related to lapping last year’s stimulus and an inflationary consumer environment.

“We remain committed to our long-term strategy and are encouraged that our updated store experience, with Sephora at Kohl’s shops, delivered positive comparable store sales across these 200 locations for the quarter.

“We continue to expect our business to improve as the year progresses, with growth in the second half as we benefit from the roll out of 400 additional Sephora stores, enhanced loyalty rewards and further investment in our stores.”

In February this year, Kohl’s announced the 400 Kohl’s stores that are due to add a Sephora beauty shop by the end of the year.

The stores are located across 36 US states, eight of which had not previously hosted a Sephora shop.