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Kohl’s said the coronavirus crisis would have a material impact on results this year as it removed eight brands including Jennifer Lopez, Juicy Couture and Popsugar from its stores and warned demand
Kohl’s said the coronavirus crisis would have a material impact on results this year as it removed eight brands including Jennifer Lopez, Juicy Couture and Popsugar from its stores and warned demand for women’s apparel would remain weak.
Shares in the department store chain, which shut stores across the US due to lockdowns to halt the pandemic, were down 6.5 percent in mid-afternoon trading after it reported a bigger-than-expected first-quarter loss.
The mid-priced chain reported a 24 percent surge in online sales in the quarter and more than 60 percent in April and said it had now reopened nearly half its US stores as lockdowns eased.
For the quarter ended May 2, however, net sales fell about 44 percent, to $2.16 billion, and the company reported a net loss of $541 million.
Excluding items, it lost $3.20 per share, far worse than forecasts of a $1.80 loss, according to Refinitiv data.
“Our financial performance, like many other retailers, will be materially impacted by COVID-19 in 2020,” chief executive Michelle Gass said on a post-earnings call.
The results follow bankruptcy filings by peers J.Crew, Neiman Marcus and JCPenney on the back of huge losses racked up in the two months since US states began issuing stay-at-home orders.
Kohl’s had been struggling in women’s apparel even before the pandemic as consumers shifted to online shopping and fast-fashion brands.
“Exiting them [the 8 brands] will create focus and clarity on the brands that will continue,” Gass said. “We’re still highly committed to the women’s business. In the short term, we’re facing some challenges here.”
Kohl’s, which has partnered with Jennifer Lopez for about a decade and began selling Juicy Couture in stores in 2014, will also cease selling Dana Buchman, Mudd, Candie’s, Rock And Republic and Elle.
