Kohl's stock dips after Q4 same-store sales fall YOY
Shares of Kohl's (KSS) are dropping in pre-market trading on Tuesday after the company posted its fourth quarter report. The print revealed comparable store sales fell over 4% year over year. The retailer also missed on revenue expectations, posting $5.71 billion versus an expected $5.73 billion.
Yahoo Finance Reporter Madison Mills joins the Live show to break down the latest developments for Kohl's and plans to boost revenue, including efforts to increase in-store traffic.
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Editor's note: This article was written by Nicholas Jacobino
Video Transcript
SEANA SMITH: Time for today's stock to watch, and that is Kohl's. Shares are sinking in the pre-market after reporting that comp sales fell over 4% in the fourth quarter from a year ago. Yahoo Finance's Madison Mills is on the floor of the New York exchange with a closer look. Maddie--
MADISON MILLS: Well, Seana, I want to point out something that one of my sources here on the floor just told me about that CPI print that ties into these Kohl's earnings. He said the reason the market is heading into the green after that hotter-than-expected print is because the market doesn't care if people can't afford their items and therefore they're taking on another job, as long as people keep spending. And that kind of tough truth there is why we're seeing this market in the green this morning, but it's not hitting every single stock where we see consumer spending. And that is where Kohl's comes into play here, because consumers are not continuing to spend at that store, and that is why this earnings print did not get a good reception from the Street. We saw that same store sales missed estimates and their forward guidance was conservative, so a couple of fundamentals there for the business not doing so well.
Kohl's is trying to increase in-store traffic, and the CEO talked about this, saying they're going to increase Babies 'R Us outposts in stores, they're already leaning on Sephora's in some of their stores. But the big question is whether or not Kohl's is going to be able to become kind of a go-to store in an environment where we're continuing to see people have this strength in their spending, whether that means they're taking on a second job, like my sources here told me, or they're putting that spending on credit cards and increasing their credit. They're not spending that money at Kohl's, and that is going to be a problem for this brand moving forward, particularly when we're seeing market share, get taken up by the likes of those big retailers like a Walmart and a target still moving forward.
