Kohl’s (NYSE:KSS) revenue fell 23% during the fiscal second quarter, the retailer said Tuesday, which wasn’t as bad as analysts feared as the coronavirus pandemic forced stores to close across the U.S. and many shoppers stayed home.
Instead, the dollars shoppers spent shifted online, and Kohl’s digital sales soared 58% compared with a year ago. Shoppers stocked up on workout gear, pajamas, toys and cozy clothing. Its online business made up 41% of total sales during the quarter, the company said, compared with 20% one year earlier.
Kohl’s shares went south $3.18., or 13.6%, in early Tuesday trading to $20.27, after investors digested the news.
Kohl’s net income fell 80% to $47 million, or 30 cents per share, from $241 million, or $1.51 a share, a year ago.
Excluding one-time charges, the retailer lost 25 cents a share, which was better than the loss of 83 cents loss forecast by analysts.
Net sales fell to $3.21 billion from $4.17 billion. That was better than the $3.09 billion expected by analysts.
Kohl’s did not report same-store sales, which track revenue at stores open for at least 12 months, due to the pandemic.
KSS said its gross profit margin shrank to 33.1% from 38.8% a year ago, due to increased shipping costs for online orders and heightened promotions, the company said.
Kohl’s, which was forced during the quarter to temporarily shut stores along with other retailers to try to help curb the spread of COVID-19, said it’s has since reopened all locations “with new safety and operating procedures, accelerated digital growth, and showed great discipline in managing inventory and expenses meaningfully lower.”
