WASHINGTON (dpa-AFX) - Shares of Kohl's Corp. (KSS) were plunging more than
21 percent in pre-market activity on the NYSE after the department store chain
on Thursday trimmed its fiscal 2024 outlook after reporting a loss in its first
quarter, below market estimates.

Tom Kingsbury, Kohl's chief executive officer, said, 'Our first quarter results
did not meet our expectations and are not reflective of the direction we are
heading with our strategic initiatives. . lower clearance sales versus last year
represented a more than 600 basis point drag on comparable sales.... We are
approaching our financial outlook for the year more conservatively given the
first quarter underperformance and the ongoing uncertainty in the consumer
environment.'

For the full year 2024, the company now projects adjusted earnings in a range of
$1.25 to $1.85 per share, on net sales between a decline of 2 percent to 4
percent.

Analysts on average expect the company to report earnings of $2.33 per share on
sales of $16.56 billion, a drop of 0.2 percent year-over-year, according to
figures compiled by Thomson Reuters. Analysts' estimates typically exclude
special items.

The company previously expected adjusted earnings in a range of $2.10 to $2.70
per share, on net sales between a decline of 1 percent and a growth 1 percent.

Operating margin for the year is now expected in the range of 3.0 percent to 3.5
percent and comparable sales to decrease between 1 percent and 3 percent.

The previous outlook was for comparable sales between flat to an increase of 2
percent, and operating margin in the range of 3.6 percent to 4.1 percent.

Kohl's' guidance includes the potential impact from credit card late fee
regulatory changes in the second half of 2024.

In fiscal 2023, net income was $2.85 per share on net sales of $16.6 billion,
with 4.7 percent drop in comparable sales, and operating margin of 4.1 percent.

On May 15, Kohl's Board of Directors declared a quarterly cash dividend of $0.50
per share, payable June 26 to shareholders of record at the close of business on
June 12.

In its first quarter, Kohl's reported loss of $27 million, compared to profit of
$14 million in the same period last year. Loss per share was $0.24, compared to
profit of $0.13 a year ago. Analysts projected $0.04 per share.

Net sales for the quarter dropped to $3.18 billion from $3.36 billion in the
same period last year. Comparable sales decreased 4.4 percent

In pre-market activity on the NYSE, Kohl's shares were losing around 21.4
percent to trade at $21.42.

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