Kohl's sales concern investors as hurricanes leave a mark
Kohl's said Thursday that its third-quarter sales fell short of expectations, concerning investors who were already fretting about the department-store sector's troubles.
The retailer's stock declined 7.4% in pre-market trading to $37.79 after the earnings report.
The company has made a concerted effort to begin reinventing itself by striking deals to sell Amazon.com devices and accept Amazon returns in some stores.
Sales at Kohl's stores open at least a year — a gauge typically used to assess a retailer's health — rose only 0.1%, missing S&P Global Market Intelligence estimates of 0.7%.
The company said the rash of hurricanes that battered the U.S. during the period, which included Harvey, Irma and Maria, as well as "other unseasonal weather" exerted a negative effect.
But the period "closed with strong sales in the second half of October," outgoing CEO Kevin Mansell said in a statement.
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Overall, the company's sales for the period increased 0.1% to $4.33 billion, edging expectations of $4.3 billion.
Kohl's net income declined 19.9% to $117 million for the period ended Oct. 28, essentially matching expectations of $119 million.
Follow Paste BN reporter Nathan Bomey on Twitter @NathanBomey.