Thu, Sep 5, 8:18 PM (92 days ago)
Kohl's Corporation's Q2 2024 report shows a 4.2% decline in net sales to $3.525 billion, driven by a 5.1% drop in comparable sales. Gross margin improved by 59 basis points to 39.6%, attributed to effective inventory management and lower freight costs. Operating income rose slightly to $166 million, with net income increasing to $66 million ($0.59 per diluted share) from $58 million ($0.52 per diluted share) YoY. Cash flow from operations was $247 million, up from $228 million, reflecting better inventory management. Long-term debt decreased by $113 million following the redemption of 9.50% notes due in 2025. Kohl's anticipates full-year net sales to decline between 4% and 6%, with an operating margin of 3.4% to 3.8%. Capital expenditures are projected at $500 million, focusing on store expansions and partnerships. The company maintains a strong liquidity position, with $231 million in cash, despite a drop in working capital and current ratio due to reduced inventory levels. Overall, while sales are down, improved margins and cost management strategies indicate a cautious but stable financial outlook.