Why Kohl's (KSS) Shares Are Plunging Today - Kohl's (NYSE:KSS)

Kohl's Corp KSS reported a fourth-quarter FY22 sales decline of 7.2% year-on-year to $5.77 billion, missing the consensus of $5.98 billion.
Q4 comparable sales decreased 6.6% versus last year.
Gross margin for the quarter contracted by 1,016 basis points to 23%. Clearance markdowns impacted margin by approximately 750 basis points, and product cost inflation impacted margin by 200 bps.
Operating loss for the quarter was $(302) million versus an income of $450 million last year.
Selling, general and administrative expenses decreased 0.6% Y/Y to $1.67 billion.
Adjusted EPS of $(2.49) missed the consensus of $0.98.
Inventory at the end of Q4 was $3.2 billion, a 4% increase Y/Y.
Kohl's held $153 million in cash and equivalents as of Jan. 28, 2023.
On Feb. 21, 2023, Kohl's Board declared a quarterly cash dividend of $0.50 per share, payable Mar. 29, 2022, to shareholders of record on Mar. 15, 2023.
"Kohl's fourth quarter results reflect meaningful proactive measures we took to better position the business for 2023, as well as sales pressure driven by the ongoing persistent inflationary environment," said CEO Tom Kingsbury.
Outlook: Kohl's sees FY23 net sales to decline 2% - 4%. It expects FY23 EPS, excluding any non-recurring charges, of $2.10 - $2.70 versus the Street view of $3.20.
Price Action: KSS shares are trading lower by 7.49% at $25.94 in premarket on the last check Wednesday.

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Why Kohl's Shares Are Plunging Today