(Reuters) -Department store chain Kohl’s trimmed its annual sales and profit forecast on Thursday, as weaker consumer demand for its apparel and footwear outweighed benefits from higher discounts and strong brand assortment, dragging its shares down 15% in premarket trade.
Faced with the resumption of student loan repayments, dwindling pandemic-era savings and higher interest rates, American consumers are prioritizing essential purchases over non-essentials.
The retailer forecast fiscal 2024 net sales to fall between 2% and 4%, compared with its previous expectation of between a 1% drop and a 1% rise.
Kohl’s now expects annual earnings per share in the range of $1.25 and $1.85, compared with its previous forecast of $2.10 to $2.70.
(Reporting by Aatrayee Chatterjee in Bengaluru; Editing by Shilpi Majumdar and Vijay Kishore)
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