Fri, Jun 6, 8:11 PM (38 days ago)
**Kohl's Corporation (KSS) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** Net sales decreased 4.1% to $3.0 billion, with comparable sales down 3.9%. - **Profit Margins:** Gross margin increased by 37 basis points to 39.9%. Operating income was $60 million, up from $43 million, with an operating margin of 1.9%. - **Net Loss:** Net loss was $15 million, or $(0.13) per diluted share, compared to a net loss of $27 million, or $(0.24) per diluted share in the prior year. - **Cash Flow:** Operating cash flow was a use of $92 million, reflecting timing of payments and receipts. **Key Trends and Uncertainties:** - **Seasonality:** Sales and income are typically higher during back-to-school and holiday seasons. - **Inflation and Economic Conditions:** Operations influenced by economic conditions, including food, fuel, and energy prices, unemployment, wage inflation, and tariffs. - **Credit Ratings:** Downgrades by S&P and Moody's increased borrowing costs and may impact future financing. **Future Operations and Impact:** - **Capital Expenditures:** Planned investments of $400 to $425 million in 2025, including Sephora shop rollout and e-fulfillment center expansion. - **Dividends:** Declared a quarterly cash dividend of $0.125 per share, payable June 25, 2025. - **Debt Management:** Issued $360 million of 10.000% senior secured notes due 2030 to repay borrowings under the revolving credit facility and outstanding 4.25% notes due in July 2025. **Management's Outlook:** - **Full Year 2025:** Expects net sales to decrease by 5% to 7%, comparable sales to decrease by 4% to 6%, operating margin in the range of 2.2% to 2.6%, and diluted earnings per share in the range of $0.10 to $0.60. - **Strategic Focus:** Committed to driving long-term shareholder value through a curated assortment, leadership in value and quality, and enhanced omnichannel platform. **Notable Changes and Impact:** - **Amendment to Credit Agreement:** Facilitated issuance of $360 million of 10.000% senior secured notes due 2030. - **EFC Closure:** Announced closing of Monroe, Ohio e-fulfillment center, expecting cumulative pre-tax charges of $25 million to $30 million in Q2 and Q3 2025.