Tom Kingsbury, Kohl’s chief executive officer, said “Our first quarter results were in line with our expectations and represented a first step as we work to drive sales and earnings performance over the long-term. We delivered margin expansion, as well as a 6% reduction in inventory. In addition, our stores business achieved productivity gains and Sephora at Kohl’s continued its sales momentum.”
“We are making progress against each of our key 2023 priorities, enhancing our customer experience, simplifying our value strategies, managing inventory and expenses with discipline, and strengthening our balance sheet. I would like to thank the entire Kohl’s team for driving against these priorities with a clear focus and strong determination. While there is still work to be done and the macroeconomic environment remains challenging, we are affirming our 2023 guidance and continue to have conviction in Kohl’s longer term opportunity,” Kingsbury continued.
First Quarter 2023 Results
Comparisons refer to the 13-week period ended April 29, 2023 versus the 13-week period ended April 30, 2022
*Net sales decreased 3.3% year-over-year, to $3.4 billion, with comparable sales down 4.3%.
*Gross margin as a percentage of net sales was 39.0%, an increase of 67 basis points.
*Selling, general & administrative (SG&A) expenses decreased 4.2% year-over-year, to $1.2 billion. As a percentage of total revenue, SG&A expenses were 34.7%, a decrease of 13 basis points year-over-year.
*Operating income was $98 million compared to $82 million in the prior year. As a percentage of total revenue, operating income was 2.8%, an increase of 55 basis points year-over-year.
*Net income was $14 million, or $0.13 per share. This compares to net income of $14 million, or $0.11 per share in the prior year.
*Inventory was $3.5 billion, a decrease of 6% year-over-year.
*Operating cash flow was a use of ($202) million.
details at: https://investors.kohls.com/news-releases/news-details/2023/Kohls-Reports-First-Quarter-Fiscal-2023-Financial-Results/default.aspx