Kohl’s shares dropped sharply Tuesday morning after the department store chain signaled a slow start to the current quarter. It says back-to-school sales have been soft because of the uncertainty surrounding children’s return to the classroom.
The company says it’ll take a conservative approach to the second half of the year. It’s preparing to further cut prices ahead of the key holiday season.
Department stores like Kohl’s have had to lower prices and invest in their online operations in a bid to keep up with other retailers. Kohl’s introduced curbside pickup, and online sales surged 58%. But higher shipping charges hurt its margins.
Overall sales dropped sharply and profit fell 80%. Those top and bottom line results beat analysts expectations.
But shares dropped 16% in early trading Tuesday, resulting in a 60% decline this year.