Shares of Kohl's Corp (KSS -1.68%) are falling on Tuesday. The company's stock plunged 25.1% as of 2:40 p.m. ET and was down as much as 27.4% earlier in the day. The steep decline comes amid a broader market pullback, with the S&P 500 down 0.4% and the Nasdaq Composite down 0.2%.
The department store chain reported disappointing quarterly results and provided a bleak outlook for the year ahead.
NYSE: KSS
Key Data Points
Disappointing earnings report
Kohl's announced that its fourth-quarter revenue and same-store sales declined 9.4% and 6.7% year over year (YOY), respectively. The retailer reported earnings per share (EPS) of $0.95, a steep drop from last year's $1.67 for the same period. It was better than Wall Street's target of $0.75, however.
The dismal performance extends a concerning trend for the retailer, which has shed 65% of its market value over the past year. The company's market cap now hovers just above $1 billion, down from potential acquisition offers that valued it at up to $9 billion in 2022.
2025 does not look good
Kohl's outlook for 2025 was grim. The company expects same-store sales to fall 4% to 6%, much worse than the expected 0.55% decline. An EPS target range of $0.10 to $0.60 also came way below Wall Street estimates of $1.24.
Kohl's CEO has announced plans to cut roughly 10% of Kohl's corporate workforce and close 27 stores by April as the company attempts to right the ship. I don't have confidence the retailer will be able to make a meaningful turnaround any time soon.
