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Kohl's was forced to close all its U.S. stores to curb the
spread of the virus, hammering sales and sending shares in the
retailer some 63% lower so far this year.
But the company said that online sales rose 24% overall in the
quarter and more than 60% in April, dwarfing earlier growth as
the chain limited operations to its app and website.
"We have begun the rebuilding process, recently reopening about
50% of our stores across the country," Michelle Gass, chief
executive officer, said.
The company, which owns over 1,100 stores in the United States,
had earlier withdrawn its full-year forecast, suspended share
buyback plan and borrowed money to combat the pandemic's impact.
At the end of the quarter, the company had $2 billion in cash at
hand.
The results come at a time peers when J.Crew, Neiman Marcus and
J.C. Penney <JCP.N> have filed for bankruptcy protection due to
huge losses.
Department stores have been struggling even before the pandemic
as consumers shift to online shopping and competition from
fast-fashion brands add to the pressure.
For the quarter ended May 2, Menomonee Falls, Wisconsin-based
Kohl's reported a bigger-than-expected loss due to store
closures and said net sales fell about 44% to $2.16 billion.
The company reported net loss of $541 million, or $3.50 per
share. Excluding one-time items, it lost $3.20 per share,
missing Wall Street expectation of a $1.80 loss, according to
IBES data from Refinitiv.
(Reporting by Nivedita Balu in Bengaluru; Editing by Arun Koyyur)
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