American retailer Kohl's gross margin climbs to 39% in Q1 FY23

The retail corporation reported a 4.2-per cent YoY reduction in selling, general, and administrative expenses, which stood at $1.2 billion. Consequently, selling, general, and administrative expenses, as a percentage of total revenue, decreased by 13 basis points YoY to 34.7 per cent.

Operating income saw a noticeable improvement, reaching $98 million as compared to $82 million in the prior year. This resulted in a 55-basis point increase in operating income as a percentage of total revenue, reaching 2.8 per cent, the company said in a media release.

“Our first quarter results were in line with our expectations and represented a first step as we work to drive sales and earnings performance over the long-term. We delivered margin expansion, as well as a 6 per cent reduction in inventory. In addition, our stores business achieved productivity gains and Sephora at Kohl’s continued its sales momentum,” said Tom Kingsbury, Kohl’s chief executive officer.

Kohl's also recorded a net income of $14 million or $0.13 per share, maintaining the same income level as the prior year, but with a per share increase from $0.11.

In terms of inventory, the company reported a figure of $3.5 billion, marking a decrease of 6 per cent YoY. However, the operating cash flow reflected a usage of $202 million.

Fibre2Fashion News Desk (DP)