A department store scraps itself ahead of a challenging year. It agrees with a growing list of retailers who predict a number of cloudy skies in their sales futures of 2025.
Kohl's, the Wisconsin -based store with more than 1,100 locations, has reduced its sales expectations for 2025, referring to shifting consumer expenditure patterns.
In his last prediction, the retailer revises the expectations for a turnover decrease between 5 percent to 7 percent.
The news sent the shares of the company on Tuesday by more than 26 percent.
The prediction came with the quarterly financial results of the company that ended on 1 February. Kohl's reported a profit of $ 48 million.
That is a steep fall of the $ 186 million that is reported the year before in the same quarter.
A slow back-to-school season and a weaker than expected holiday performance forced Kohl's to revise his expectations with the more conservative prediction.
To combat the expected decline, Kohl's strategic steps to stabilize his activities, including the decision to close dozens of 'underperforming' stores.
Kohl's has reported a delay in sales in the past quarter and expects it to fall further
Kohl's Previously announced plans to close 27 stores in 15 states by 1 April.
“We always make these decisions very seriously,” said former CEO Tom Kingsbury in a January press release.
“While we continue to build on our long -term growth strategy, it is important that we also take difficult but necessary actions to support the health and future of our company for our customers and our teams.”
Adjustment for a series of store openings and closures is expected to fall by 4 percent to 6 percent comparable retailer.
Wall Street predicted that the sale would fall at a slower pace.
The company is also in the middle of a C-suite shakeup.
In January, Kohl's Ashley Buchanan, an experienced director of Walmart and Sam's Club, placed in the vacancy of CEO, while Kingsbury shifted in an advisory role.
Kohl's has joined a list of gigantic chains that expect sales delay this year, while the fear of the recession is starting to swallow.
Huge chains reported that many shoppers are expected to withdraw this year from spending, after a fight with years of supermarket, vehicle and home inflation.
Kohl's announced plans to close dozens of stores in 2025
Kohl's last prediction sent the shares of the company on Tuesday by more than 26 percent
Kohl's recently appointed Ashley Buchanon, a former Walmart director, as the latest CEO
Walmart, often seen as a Paco from the retail trade with its extensive store footprint and a wide range of products, said that the growth will delay this year.
The company revised its growth meter expectations of up to 3 to 4 percent in 2025. Walmart achieved the growth of 9 percent in 2024.
Best Buy and Target also warned of comparable cost pressure.
Campbell's, another Bellwether with a huge range of cheap snack products and soups, also expects consumers to protect their wallets.
Retailers such as Texas Roadhouse and Taco Bell have already reported that they delayed the sale in the new year.
The figures from consumer expenditure contributed to massive sale on Wall Street, while investors sent indexes to the territory of 'correction'.
Wall Street started the week with one of the worst day in three years on Monday, while investors struggled with economic uncertainty and fresh turbulence from Washington.
The industrial average of Dow Jones fell on Monday 890 points, a decrease of more than 2 percent, while the S&P 500 fell 2.7 percent.
The tech-heavy Nasdaq fell furthest and lost 4 percent on the trade of the day. This was the worst session for the index since September 2022.
Part of the stumbling is due to President Trump's comments.
In a Sunday Fox News interview, the president refused to exclude the possibility that his aggressive trade policy – including radical rates for important American trading partners – was able to push the country into a recession.
