By Dean Seal
Kohl's cut its dividend and guided for another sales decline in fiscal 2025 that's bigger than Wall Street had been expecting, weighing on shares.
The department-store chain expects 2025 sales to fall 5% to 7% on a reported basis and 4% to 6% on a comparable basis, the latter of which adjusts for store openings and closures. Earnings are expected to come in at 10 cents to 60 cents a share for the fiscal year.
Analysts polled by FactSet had been projecting a comparable sales decline of less than 1% for the year and had expected earnings to at least break $1 a share.
Kohl's also said Tuesday that it is cutting its quarterly dividend to 12.5 cents a share, down from 50 cents a share, for the next payout on April 2.
Shares fell 17% to $10 in premarket trading.
For the quarter ended Feb. 1, Kohl's posted a profit of $48 million, or 43 cents a share, compared with $186 million, or $1.67 a share, in the same period a year earlier.
Stripping out one-time items, adjusted earnings were 95 cents a share. Analysts had been expecting 73 cents a share.
Sales for the quarter fell 9.4% to $5.18 billion, about in line with analyst estimates. Comparable sales were 6.5% lower.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
March 11, 2025 07:42 ET (11:42 GMT)
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