Kohl’s (NYSE:KSS) on Thursday withdrew its full-year outlook, pointing to volatility in the retail environment and significant macroeconomic headwinds, on top of its “unexpected CEO transition.”
Kohl’s also reported third-quarter earnings on Thursday, with revenue dropping 7% to $4.28 billion. The company warned investors of this drop in revenue earlier this month when it provided preliminary results for the quarter. Kohl’s also said it would not provide guidance for the holiday-shopping quarter.
Kohl’s has been under pressure from activist investors as its sales have declined and its stock has slumped. Over the summer, Kohl’s ended talks to sell its business to The Vitamin Shoppe owner Franchise Group, blaming the tough retail environment that worsened since the beginning of the bidding process.
Earlier this month, Kohl’s said Chief Executive Michelle Gass would leave in December. She will join Levi Strauss to be its CEO in waiting. Gass will hand over the role of CEO to Tom Kingsbury, a Kohl’s board member, will serve as interim CEO beginning Dec. 2, while the retailer searches for a permanent leader. Ancora applauded Kingsbury’s appointment earlier in November.
Still, the retailer has rejected criticism from activist investors, moving forward with plans to redesign stores, add new brands and offer more e-commerce options for customers.
Kohl’s has said in recent quarters that inflation has burdened its middle class customers, causing shoppers to visit the store less, and spend less, either buying fewer items or less expensive brands.
KSS shares gained 89 cents, or 3%, to $30.69.
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