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Kohl’s announces $541M loss in 1st quarter, 43.5% decrease in sales amid COVID-19 pandemic

MENOMONEE FALLS — Menomonee Falls-based Kohl’s Corp. reported results for the company’s first fiscal quarter of 2021 on Tuesday, May 19; the quarter ended on May 2.

Among the data reported by the company, was a 43.5% drop in sales and a 40.6% drop in total revenue — down more than $1.5 billion from 2019.

The company also reported a $541 million net loss of income for the quarter and an adjusted net loss income of $495 million.

Actions Taken In Response to COVID-19

As part of the COVID-19 response, the Kohl’s announced that it has taken the following actions to preserve financial liquidity and financial flexibility:

  • Managed inventory receipts meaningfully lower,
  • Significantly reduced expenses across the business inclusive of marketing, technology, operations and payroll,
  • Decreased planned capital expenditures by approximately $500 million,
  • Suspended share repurchase program,
  • Suspended regular quarterly cash dividend beginning in the second quarter of 2020,
  • Replaced and upsized revolver to $1.5 billion secured facility, and
  • Issued $600 million notes due 2025.

Statement from Michelle Gass, Kohl’s CEO:

“We entered the year in a strong financial position and our business was tracking to our expectations prior to the onset of the crisis. We immediately responded with actions to protect the health and safety of our associates and customers and to preserve our financial position. I am incredibly proud of how our associates stepped up to face this unprecedented challenge with speed and agility. Our actions to manage cash outflow and increase liquidity have been instrumental in enhancing our position to navigate this crisis, and we believe our history of prudent capital management will continue to serve us well.

“We have begun the rebuilding process, recently reopening about 50% of our stores across the country. In doing so, we have taken special care to equip our stores with the latest health and safety measures as we welcome back our associates and customers.

“As we look ahead, we know this experience will have a lasting impact to customer behavior and the retail landscape, and we are evolving our strategies to ensure our relevance and to capture market share.”

 

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