Kohl’s Reports Second Quarter Fiscal 2023 Financial Results

Tom Kingsbury, Kohl’s chief executive officer, said, “Our second quarter earnings were in line with our expectations. We maintained strong sales momentum in Sephora at Kohl’s, reduced inventory by 14%, and managed expenses tightly. Further, solid cash flow generation allowed us to reduce our borrowings in the period.”

“Many of our strategic efforts are just underway, which we expect will contribute incrementally in the back half of the year, and even more so in 2024 and beyond. We have enhanced the store experience and recently opened an additional 200 Sephora at Kohl’s shops, and are taking steps to further optimize our assortment and simplify our value strategies. Looking ahead, we are reaffirming our 2023 guidance and remain confident in our longer-term opportunity. I want to thank the entire Kohl’s team for their efforts to support and drive improved Kohl’s performance,” Kingsbury continued.

Second Quarter 2023 Results
Comparisons refer to the 13-week period ended July 29, 2023 versus the 13-week period ended July 30, 2022
*Net sales decreased 4.8% year-over-year, to $3.7 billion, with comparable sales down 5.0%.
*Gross margin as a percentage of net sales was 39.0%, a decrease of 61 basis points.
*Selling, general & administrative (SG&A) expenses increased 1.6% year-over-year, to $1.3 billion. As a percentage of total revenue, SG&A expenses were 33.5%, an increase of 208 basis points year-over-year.
*Operating income was $163 million compared to $266 million in the prior year. As a percentage of total revenue, operating income was 4.2%, a decrease of 233 basis points year-over-year.
*Net income was $58 million, or $0.52 per diluted share. This compares to net income of $143 million, or $1.11 per diluted share in the prior year.
*Inventory was $3.5 billion, a decrease of 14% year-over-year.
*Operating cash flow was $430 million.

Six Months Fiscal Year 2023 Results
Comparisons refer to the 26-week period ended July 29, 2023 versus the 26-week period ended July 30, 2022
*Net sales decreased 4.1% year-over-year, to $7.0 billion, with comparable sales down 4.7%.
*Gross margin as a percentage of net sales was 39.0%, a decrease of 1 basis point.
*Selling, general & administrative (SG&A) expenses decreased 1.3% year-over-year, to $2.5 billion. As a percentage of total revenue, SG&A expenses were 34.1%, an increase of 103 basis points year-over-year.
*Operating income was $261 million compared to $348 million in the prior year. As a percentage of total revenue, operating income was 3.5%, a decrease of 96 basis points year-over-year.
*Net income was $72 million, or $0.65 per diluted share. This compares to net income of $157 million, or $1.22 per diluted share in the prior year.
*Operating cash flow was $228 million.
details at: https://investors.kohls.com/news-releases/news-details/2023/Kohls-Reports-Second-Quarter-Fiscal-2023-Financial-Results/default.aspx