Retail chain Kohl’s saw its stock plunge more than 22% at one point in Thursday’s premarket trading following a disappointing earnings report.
Kohl’s reported a loss of $27 million or 24 cents per share compared to the 4 cents per share profit estimated by Wall Street analysts. The company had $14 million or 13 cents per share profit in the same period last year.
The retailer also came below expected $3.34 billion in revenue, reporting $3.18 billion, which is 5.3% decrease compared to the same period in 2023.
The investors were not thrilled with the lower guidance for 2024. Kohl’s issued guidance for full-year diluted earnings per share at $1.25 to $1.85, while analysts had much bigger expectations of $2.34 per share. Additionally, analysts were expecting a 0.2% gain in sales over a full year, while the company expects to experience a 2% and 4% decline in net sales.
“We recognize we have more work to do in areas of our business,” CEO Tom Kingsbury said in a press release. “We are approaching our financial outlook for the year more conservatively given the first quarter underperformance and the ongoing uncertainty in the consumer environment.”
Before the premarket decline, Kohl’s stock traded at $27.25 per share. The company’s shares were down 2.82% year-to-date at that point.