Kohl’s (NYSE:KSS) on Tuesday missed earnings expectations for the first quarter and slashed its outlook for the full year, sending its shares tumbling more than 10%.
The retailer also for the first time in two years missed same-store sales expectations.
CEO Michelle Gass said the year "started off slower than we’d like."
Gass added, "We are actively addressing the opportunities that impacted our first quarter sales and we have strong initiatives that will enhance our sales performance in the second half. We are incredibly excited about our nationwide rollout of the Amazon returns program as well as several important brand launches and program expansions.
"Operationally, the team reacted appropriately throughout the quarter by managing expenses in line with our expectations."
Kohl’s reported adjusted earnings of 61 cents a share on sales of $4.087 billion. Analysts were calling for earnings per share of 68 cents on revenues of $3.944 billion.
Sales at Kohl’s stores open for at least 12 months fell 3.4%, while analysts were calling for a drop of just 0.2%.
Kohl’s said it now expects adjusted earnings per share to fall within a range of $5.15 to $5.45, compared to a prior range of $5.80 to $6.15.
Earlier this month, Kohl's Board of Directors declared a quarterly cash dividend on the Company's common stock of $0.67 per share. The dividend is payable June 26, to shareholders of record at the close of business on June 12
KSS stock was down $7.61, or 12.1%, on the news to $55.30, having fallen about 1.2% over the past 12 months.
