Kohl’s (KSS) reports second quarter 2020 loss per share

Kohl’s revenue fell 23% in the second fiscal quarter, the retailer said on Tuesday, which was not as bad as analysts feared as the coronavirus pandemic forced stores to close. across the United States and many buyers stayed home.

Instead, dollars moved online, and Kohl’s digital sales are up 58% from a year ago. Buyers stocked up on training equipment, pajamas, toys and comfortable clothing. Its online business accounted for 41% of total sales in the quarter, the company said, up from 20% a year earlier.

Kohl’s shares jumped more than 4% in pre-market news trading.

Here’s how the retailer did in its fiscal second quarter ended Aug. 1 compared to what analysts expected, based on Refinitv data:

• Adjusted EPS: 25 cents loss vs. 83 cents expected
• Revenue: $ 3.21 billion vs. $ 3.09 billion, expected

“As we look to the future, we anticipate that the crisis will continue to impact our business in the near term,” Chief Executive Officer Michelle Gass said in a statement. “We are well positioned to take advantage of changing customer behaviors and the disruption in the retail industry, which we believe will drive long-term growth and increase our market share.

Kohl’s net income fell 80% to $ 47 million, or 30 cents per share, from $ 241 million, or $ 1.51 per share, a year ago.

Excluding one-time charges, the retailer lost 25 cents a share, which was better than the 83-cent loss expected by analysts.

Net sales fell to $ 3.21 billion from $ 4.17 billion. It was better than the $ 3.09 billion expected by analysts.

Kohl’s has not reported same-store sales, which track revenue in stores open for at least 12 months, due to the pandemic.

It’s disgusting the profit margin fell to 33.1% from 38.8% a year ago, due to higher shipping costs for online orders and intensified promotions, the company said.

Kohl’s, which was forced in the quarter to temporarily close stores with other retailers in an attempt to curb the spread of Covid-19, said it had since reopened all sites “with new security procedures and operating, accelerated digital growth and demonstrated great discipline in managing significantly lower inventory and expense. ”

He ended the second quarter with $ 2.4 billion in cash and $ 500 million in availability on his credit revolver, he said.

Looking ahead, the retailer said it expects shoppers to start shopping for the holidays earlier this year due to the pandemic and the uncertainty it brings.

“We will meet their needs accordingly,” the company said.

Kohl’s shares have fallen nearly 54% so far this year at market close on Monday. The company has a market capitalization of $ 3.7 billion.

Find the full results press release here.