After a disappointing second quarter, Kohl’s has decided to go conservative in the second half of 2020.
While announcing its Q2 results yesterday (18 August), the American fashion retailer said that its revenue dropped by 23 per cent during the period to clock US $ 3.21 billion.
Though it is much better than analysts’ prediction of US $ 3.09 billion, it is still a 23 per cent fall from last year (US $ 4.17 billion).
So it isn’t that bad as the numbers may suggest, especially in the current scenario. The e-commerce sales for the retailer have jumped by 58 per cent Y-o-Y, making up an impressive 41 per cent of company’s total sales.
The retailer said that it has reopened all its stores, accelerated its digital business and showed discipline in managing inventory.
Notably, the retailer, as reported by CNBC, ended the quarter with US $ 2.4 billion in cash on hand. Add to this, there’s US $ 500 million of availability on its credit revolver.
Going forward, Kohl’s said that it will adopt a conservative approach for the remaining part of this year. It expects shoppers to start buying for holiday season a bit earlier this year, but also expects some uncertainty. “We’ll meet their needs accordingly,” the retailer said.
The company said that even the back-to-school season has started slowly as lots of parents are still unsure about how and when their kids will return to classrooms.
Founded in 1962, Kohl’s is known for its clothes, footwear and bedding among others and generates revenue of US $ 20.229 billion.
