Kohl’s raised its financial outlook for the year on Thursday, after a solid rebound in the first quarter from the devastating impact of the pandemic.
But those raised expectations fell short of what many industry analysts had been projecting and shares plunged nearly 11 percent Thursday. During a conference call, Kohl’s explained that it it took into account logjams at ports and inflationary pressures in wages that could increase costs in the second half of the year.
Kohl’s is trying to manage supply chain issues by adding more drivers and increasing frequency of store deliveries.
More shoppers came back to shop in stores as COVID-19 vaccinations became more common and Kohl’s bounced back to a profit after the chain, based in Menomonee Fall, Wisconsin, lost money last year when it was forced close its doors along with thousands of other retailers.
Quarterly sales and profits topped almost all expectations, but Kohl’s said it expects net sales to increase only in the mid-to-high teens percentage range. That spooked investors.
“Kohl’s is either being conservative and cautious with its forecasts – which is understandable given how uncertain everything remains – or lacks confidence that its various initiatives and a strong consumer economy