Kohl's Corp posted a bigger-than-expected decline in quarterly same-store sales on Tuesday, as lower traffic at department stores due to the COVID-19 pandemic hammered demand for footwear and apparel.
The mid-priced chain’s shares, which have nearly halved in value this year, fell about 3% before the bell.
U.S. department stores, struggling to boost sales even before the pandemic, have had to offer heavy discounts and invest in their e-commerce business to keep pace with online-centric, off-price, and deeper-pocketed big-box retailers.
Same-store sales at Kohl’s decreased 13.3% in the third quarter, even as Kohl’s said digital sales growth remained strong. Analysts on average had expected an 11.39% decline, according to IBES data from Refinitiv.
Net sales fell about 13% to $3.78 billion in the quarter ended Oct. 31.
Kohl’s reported a net loss of $12 million, or 8 cents per share, compared with a profit of $123 million, or 78 cents per share, a year earlier.
Excluding items, Kohl’s earned 1 cent per share, compared with the average analyst estimate of a loss of 43 cents, as it cut selling, general, and administrative expenses.
Kohl’s also said it plans to reinstate its quarterly dividend in the first half of 2021 after a COVID-19-led pause.