Wisconsin-based retail chain Kohl’s Corporation has reported results for the quarter ended April 30, 2016, causing a steep drop in the company’s stock.
As of 11 a.m., Kohl’s was trading at $34.02, an approximately 12 percent plunge from its opening price.
Diluted earnings per share dropped a whopping 50 percent to $0.31 from 0.63, while net income had a similar decrease to 58 million from $127 million. Sales were down 3.7 percent to $3.972,000 and comparable store sales were down 3.9 percent However, men’s and women’s apparel were among the retailer’s strongest categories.
Kevin Mansell, Kohl’s chairman, chief executive officer and president, said, “First quarter sales were challenging. Despite the sales environment, we were able to manage our gross margin and inventory levels consistent with our expectations as we took the markdowns necessary to clear excess inventory. We managed our expenses effectively throughout the quarter as every area contributed to our savings versus our plan.”