A view outside of a Kohls store on July 16, 2020 in Miramar, Florida.
Johnny Louis | Getty Images
Kohl's sales fell 23% in the second quarter of fiscal year, the retailer said Tuesday, which wasn't as bad as analysts feared as the coronavirus pandemic forced stores in the U.S. to close and many shoppers stayed at home.
Instead, the dollars have shifted online, and Kohl's digital sales jumped 58% year over year. Buyers have stocked up on exercise equipment, pajamas, toys, and cozy clothing. Online business represented 41% of total revenue for the quarter, compared to 20% a year earlier.
Kohl's shares rose more than 4% in premarket trading on the news.
Here's how the retailer behaved in its second fiscal quarter ending August 1, compared to analyst expectations based on Refinitv data:
Adjusted EPS: a loss of 25 cents versus a loss of 83 cents, expected revenue: $ 3.21 billion versus $ 3.09 billion expected
"Looking ahead, we plan that the crisis will continue to affect our business in the short term," said Michelle Gass, managing director, in a statement. "We are well positioned to capitalize on evolving consumer behavior and disruptions in the retail industry that we believe will drive long-term growth and market share."
Kohl's net income fell 80% from $ 241 million, or $ 1.51 per share, a year ago to $ 47 million, or 30 cents per share.
Without a one-time charge, the retailer lost 25 cents per share, which was better than the 83 cents forecast by analysts.
Net sales decreased from $ 4.17 billion to $ 3.21 billion. That was better than what analysts had expected to be $ 3.09 billion.
Kohl & # 39; s did not report any same store sales where revenue is recorded in stores that have been open for at least 12 months due to the pandemic.
It's disgusting The profit margin declined to 33.1% from 38.8% last year due to higher shipping costs for online orders and increased promotions.
Kohl's, which was forced to temporarily close stores along with other retailers during the quarter to help curb the spread of Covid-19, said it has since reopened all locations "with new security and operational procedures, following digital growth." Accelerated and demonstrated great discipline in managing inventory and spending significantly lower. "
The second quarter ended with $ 2.4 billion in cash and $ 500 million in credit turret availability.
Looking ahead, given the pandemic and associated uncertainty, the retailer expects shoppers to start shopping for the holidays earlier this year.
"We will meet their needs accordingly," said the company.
Kohl's shares were down nearly 54% this year at close of trading on Monday. The company has a market capitalization of $ 3.7 billion.
The full press release on the results can be found here.