The department store chain on Tuesday posted a narrower-than-expected second-quarter loss as consumers delved back in to buying goods, particularly online, though sales that were down nearly a quarter from where they were a year ago.
Kohl's posted an adjusted loss of $39 million, or 25 cents a share vs. adjusted net income of $247 million, or $1.55 a share, a year earlier. Analysts polled by FactSet had been expecting a loss of 88 cents a share.
Sales came in at $3.4 billion, down 23% from the $4.4 billion in sales it brought in a year ago though better than the $3.1 billion expected by analysts polled by FactSet. Digital sales increased 58%, the company said.
While the company did not provide forward guidance, it did say it expects to see customers begin their holiday shopping earlier this year, which should help bolster sales in the third and fourth quarters, though it still expects Covid-19 “to continue to impact our business.”
On the cost-cutting side, Kohl’s said it reduced its inventory levels by 26% in the second quarter, in addition to suspending its dividend payout and share buyback program. On the liquidity front, Kohl’s said it “replaced, securitized, and upsized” its $1.5 billion revolving credit, noting it now has $2.4 billion in cash available.