Selling, general, and administrative expenses decreased by 0.8 per cent YoY to $1.2 billion. However, as a percentage of total revenue, selling, general, and administrative expenses rose by 166 basis points, reaching 36.3 per cent. Operating income for the quarter was $43 million, a significant drop from $98 million in the prior year. This represented 1.3 per cent of total revenue, a decrease of 148 basis points YoY, Kohl's said in a press release.

The company reported a net loss of $27 million, or $0.24 per diluted share, compared to a net income of $14 million, or $0.13 per diluted share, in the first quarter of fiscal 2023. Inventory levels were reduced to $3.1 billion, a 13 per cent decrease YoY.

“Our first quarter results did not meet our expectations and are not reflective of the direction we are heading with our strategic initiatives. Regular price sales increased year-over-year, with early success in underpenetrated categories and positive trends in our Women’s business. However, lower clearance sales versus last year represented a more than 600 basis point drag on comparable sales. Importantly, we were able to deliver gross margin expansion, manage inventory down 13 per cent and tightly control expenses in the quarter,” said Tom Kingsbury, Kohl’s chief executive officer.

Fibre2Fashion News Desk (DP)