Kohl's reported lower-than-expected quarterly sales on Tuesday as a result of consumers spending less money at its department shops due to ongoing high inflation.
The company's shares, which are based in Menomonee Falls, Wisconsin, dropped 2.4% in premarket trading.
Due to rising interest rates, the need to repay student loans, the depletion of savings from the epidemic, and the resumption of loan repayments, American consumers are opting to prioritise spending more money on necessities while postponing non-essential purchases.
According to LSEG data, its comparable sales fell by 5.5% in the third quarter, compared with analysts' expectations for a 3% decline.
For the third consecutive quarter, inventories decreased by 13% throughout the quarter.
In addition, the company increased its expectations for per-share earnings from $2.10 to $2.70 to the lower end of its annual profit prediction, which was previously set at $2.30 to $2.70.
(Source:www.reuters.com)
The company's shares, which are based in Menomonee Falls, Wisconsin, dropped 2.4% in premarket trading.
Due to rising interest rates, the need to repay student loans, the depletion of savings from the epidemic, and the resumption of loan repayments, American consumers are opting to prioritise spending more money on necessities while postponing non-essential purchases.
According to LSEG data, its comparable sales fell by 5.5% in the third quarter, compared with analysts' expectations for a 3% decline.
For the third consecutive quarter, inventories decreased by 13% throughout the quarter.
In addition, the company increased its expectations for per-share earnings from $2.10 to $2.70 to the lower end of its annual profit prediction, which was previously set at $2.30 to $2.70.
(Source:www.reuters.com)
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