© Reuters. A sign marks a Kohl’s store in Medford, Massachusetts, U.S., February 21, 2017. REUTERS/Brian Snyder/File Photo
(Reuters) -Kohl’s on Tuesday forecast fiscal 2024 profit below market expectations, as it aims to spend on expanding its Sephora partnership and other investment activities.
The retailer forecast annual earnings per share in the range of $2.10 to $2.70, the mid-point of which was below analysts’ average estimate of $2.61, as per LSEG data.
Kohl’s (NYSE:) anticipates a potential impact from credit card late fee regulatory changes in the second half of 2024, it said.
Despite weaker demand, CEO Tom Kingsbury’s bet fresher styles, leaner inventories, shift to monthly discounts instead of seasonal, and more Sephora shops helped it drive traffic during the holidays.
It posted a smaller-than-expected drop in quarterly sales, helped by holiday discounts for its apparel and footwear as well as strong beauty sales at its Sephora stores.
The U.S. department store retailer posted net sales decline of 1.1% of $5.71 billion, compared to analysts’ average estimates of a 1.3% drop to $5.70 billion, as per LSEG data.
