Kohl's blamed its rough quarter on a squeezed middle class, but one analyst says it's because stores are a mess
The department store reported a 6.6% drop in sales and $302 million in losses during the quarter ended January 28. Executives blamed the diminished sales on inflation continuing to squeeze middle-class consumers, but inflation isn't the only culprit, according to GlobalData analyst Neil Saunders.
Kohl's Chief Executive Tom Kingsbury, who served as interim CEO before being elevated to the position permanently in early February, acknowledged during a call with investors Wednesday that the company needs to make changes to its stores, which represent nearly 70% of Kohl's annual sales. Kingsbury said that Kohl's store portfolio remains healthy. The company plans to embark on store refreshes and plans to open seven new stores in 2023, he said.
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