Kohl's Corporation (NYSE:KSS) shares plunged almost 19% after the retailer’s 2025 outlook fell short of Wall Street expectations.
For 2025, the company expects its net sales to decrease between 5% and 7%, worse than expectations of a 2% decline, and comparable sales to decrease between 4% and 6%, compared to expectations of a 1.8% drop.
Earnings per share (EPS) are expected to be in the range of $0.10 to $0.60, significantly lower than the consensus of $1.26.
For Q4, revenue was down 9.4% year-over-year to $5.2 billion, which was in line with expectations.
On a positive note, EPS of $0.95 beat estimates of $0.74.
Kohl’s also cut its quarterly dividend to $0.125 per share.
“We have identified key areas of focus and are taking action in 2025 to reposition Kohl’s for future success,” Kohl’s CEO Ashley Buchanan said in a statement.
“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.”
Shares of Kohl’s traded down 18.6% at about $9.80 shortly after US markets opened on Tuesday.