For its first quarter earnings release on Thursday, the Menomonee Falls-based department store reported non-GAAP EPS of $0.11, coming in $0.59 below estimates. Meanwhile, revenue of $3.72 billion narrowly edged expectations by $30 million.
“The year has started out below our expectations,” CEO Michelle Gass admitted. “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.”
Based upon the negative turn in business trends, the company cut its full-year earnings forecast, adding to the slew of retailers reining in forecasts.
Net sales are now expected to grow up to 1%, below Wall Street consensus growth of 1.94%. Earnings per share are now expected to be in the range of $6.45 to $6.85, also well below the consensus set at $7.19. The latter figure is also well below the company’s prior forecast of $7.00 to $7.50.
Shares fell over 5% shortly after the results crossed newswires, adding to an over 11% slid on Wednesday.
The drop in shares on the downbeat results come as the company considers the prospects of selling itself and is encouraged to do so by activist shareholders.
“Regarding our review of strategic alternatives, we continue to engage with multiple interested parties,” Gass commented. “We continue with our detailed diligence phase and are pleased with the number of parties who recognize the value of our business and plan.”
The release adds it expects “fully-financed final bids to be submitted in the coming weeks.”
Read more on the recent developments in the proxy battle over Kohl’s.