Dive Brief:
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Kohl’s Corp. adjusted its full-year and fourth-quarter guidance down after January sales proved disappointing.
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The Menomonee Falls, Wis.-based department-store chain said fourth-quarter sales at stores open at least a year fell 2% from a year ago because a January sales decreases offset a small .8% increase from the November and December holiday shopping season.
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The company said the poor sales performance was due to diminished store sales traffic that it did not combat with deep discounts, as well as unexpected expenses related to its e-commerce website.
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Kohl's shares rose 3.5% $1.75 nevertheless, to $51.58 in morning trading, showing that investors, at least, probably expected worse.
Dive Insight:
Kohl’s continues to struggle as fewer people come into its stores — a familiar story this holiday and post-holiday season. Unlike some retailers, the company opted not to go crazy with discounts to lure more people in, leaving inventory on its shelves. The company blames the decline in part on expenses related to e-commerce — expenses that, hopefully, will eventually help boost its sales in that area. The fact that investors didn’t punish the retailer for its poor showing demonstrates the good health of the Kohl’s brand, but that won’t keep everyone happy forever.