“We have identified key areas of focus and are taking action in 2025 to reposition Kohl’s for future success. Our customers expect great product, great value, and a great experience from Kohl’s. I am confident that the areas we identified will deliver on what customers want and expect from Kohl’s,” said Ashley Buchanan, chief executive officer (CEO) at Kohl’s.
Fiscal 2024 (FY24) financial overview
The net sales of the company declined by 7.2 per cent year-over-year (YoY) to $15.4 billion in full fiscal 2024 (FY24) ended February 1, 2025, with comparable sales going down by 6.5 per cent YoY. The gross margin as a percentage of net sales increased by 50 basis points (bps) to 37.2 per cent. Selling, general, and administrative (SG&A) expenses dropped 3.7 per cent YoY to $5.3 billion but rose to 32.7 per cent of total revenue, reflecting a 118-bps increase.
The operating income was $433 million, representing 2.7 per cent of total revenue, a decline of 143 bps. The net income of the company stood at $109 million, or $0.98 per diluted share, while adjusted net income was $167 million, or $1.50 per adjusted diluted share. Operating cash flow was reported at $648 million, and long-term debt was reduced by $113 million.
Performance in fourth quarter (Q4)
In Q4 FY24, net sales declined 9.4 per cent YoY to $5.2 billion. Comparable sales fell 6.7 per cent. Gross margin as a percentage of net sales increased by 49 bps to 32.9 per cent. SG&A expenses dropped 4.5 per cent YoY to $1.5 billion but increased to 28.5 per cent of total revenue, reflecting a 148-bps rise.
The operating income declined to $126 million, representing 2.3 per cent of total revenue, a decrease of 270 bps. The net income was reported at $48 million, or $0.43 per diluted share, while adjusted net income stood at $106 million, or $0.95 per adjusted diluted share. Inventory rose 2 per cent YoY to $2.9 billion, while operating cash flow was reported at $596 million.
ALCHEMPro News Desk (SG)
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