Kohl’s falls after same-store sales miss expectations

 Kohl’s Corp. reported same-store sales in the fourth quarter that missed the average analyst estimate, suggesting the department store chain struggled to attract shoppers during the crucial holiday shopping season.

The retailer, which appointed Chief Executive Officer Tom Kingsbury to lead the company about a year ago, has struggled to drive sales growth. Same-store sales in the fourth quarter fell 4.3%, an eighth straight decline though an improvement over the 5.5% decline in the prior quarter. 

The shares fell less than 1% in early trading in New York. Kohl’s stock was down 5.2% for the year through Monday’s close while the S&P Small Cap 600 Index fell 1%%.

For the full year, Kohl’s expects earnings per share in the range of $2.10 to $2.70, compared with the average analyst estimate of $2.67.

The retailer also said Tuesday that the Sephora shops that it operates within its stores are projected to exceed $2 billion in sales by 2025, and that it will add 140 new small-format Sephora locations in the next few months. Since the partnership was announced in 2020, Sephora has helped drive new foot traffic to Kohl’s stores.

While economic uncertainty due to higher interest rates and inflation is a factor for all retailers, some have managed to maintain customer loyalty better than others. Fourth-quarter results from US apparel retailers have been largely mixed, with Gap Inc. and Abercrombie & Fitch Co. reporting better-than-expected results and Victoria’s Secret & Co. struggling to grow sales in North America.