Department store retail chain Kohl’s reported falling sales in Q4 2024 and has predicted a negative outlook for the upcoming fiscal year.
In Q4, the company saw its net sales drop 9.4% to $5.2 billion, while its comparable sales fell by 6.7% and net income totaled $48 million compared to $186 million in the year prior.
Ashley Buchanan, Kohl’s CEO, said: “Kohl’s is built on a strong foundation that includes operating more than 1,100 conveniently located stores nationwide, serving over 60 million customers, with 30 million of those customers being Kohl’s loyalty members.
“Kohl’s has a tremendous opportunity to build on our strengths, address key areas of opportunity, and better serve our customers every day.
“We have identified key areas of focus and are taking action in 2025 to reposition Kohl’s for future success.”
In fiscal 2024, Kohl’s net sales fell by 7.2% to $15.4 billion, while comparable sales dropped by 6.5%, and net income totaled $109 million compared to $317 million in the year prior.
The retailer plans to execute a turnaround strategy that involves offering a more balanced assortment for customers, reestablishing Kohl’s position as a leader in value products, and providing a frictionless shopping experience.
Buchanan added: “When examining recent performance, we have fallen short of fully delivering what our customers want and expect from Kohl’s. Most of what we need to do is in our control and can be achieved by setting a clear vision and holding ourselves accountable to executing at a higher standard.”
Kohl’s also recently announced plans to shutter 27 locations as part of its streamlining efforts to optimize its store fleet.
For the upcoming year, Kohl’s expects net sales to drop by 5 to 7% and comparable sales to decrease by 4 to 6%.
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