US' Kohl's posts net sales of $16.6 bn in FY23

A notable improvement was seen in gross margin, which rose by 347 basis points to 36.7 per cent of net sales. Kohl's also managed to reduce its selling, general, and administrative expenses by 1.3 per cent to $5.5 billion, translating into 31.5 per cent of total revenue, marking a slight increase in expense ratio by 67 basis points from the previous year, the company said in a press release.

Operating income for the year showed a significant boost, climbing to $717 million from $246 million, with net income turning around from a $19 million loss to a robust $317 million, or $2.85 per diluted share.

The fourth quarter of fiscal 2023 (Q4 FY23), which included an additional 14th week, reported net sales of $5.7 billion, down by 1.1 per cent year-over-year (YoY). Comparable sales for the quarter decreased by 4.3 per cent. However, gross margin saw a substantial rise of 937 basis points to 32.4 per cent, and selling, general, and administrative expenses fell by 4 per cent to $1.6 billion, making up 27.0 per cent of total revenue—a decrease from the previous year.

The operating income for the quarter notably improved to $299 million, a significant recovery from a $302 million loss in the prior year, with net income reaching $186 million, or $1.67 per diluted share, a stark contrast to the $273 million loss reported last year. Additionally, inventory levels were brought down by 10 per cent YoY to $2.9 billion.

“2023 represented an important year for Kohl’s. We enhanced our store experience and invested in underpenetrated categories. We also simplified our value strategies and implemented new inventory management processes. The early success of our strategies is evident. Our store business had its best comparable sales performance since 2010, and we managed inventory down 10 per cent at year end,” said Tom Kingsbury, Kohl’s chief executive officer.

Fibre2Fashion News Desk (DP)