Kohls Corp (NYSE:KSS) stock fell 7.27% (As on March 12, 12:34:38 AM UTC-4, Source: Google Finance) after the company’s new CEO warned that a turnaround will take “some time” after the U.S. department store chain forecast a bigger-than-anticipated drop in annual sales. Kohl’s fourth-quarter same-store sales fell 6.7%, compared with estimates of a 6.2% drop. Operating income was $433 million compared to $717 million in the prior year. As a percentage of total revenue, operating income was 2.7%, a decrease of 143 basis points year-over-year. Net income was $109 million, or $0.98 per diluted share, and adjusted net income of $167 million, or $1.50 per adjusted diluted share. This compares to net income of $317 million, or $2.85 per diluted share in the prior year. Operating cash flow was $648 million. Long-term debt was reduced by $113 million through the redemption of the remaining 9.50% notes due May 15, 2025.

Moreover, from a channel perspective, the store comparable sales declined 3.1% in Q4, and were down 5.6% for the year. Store sales benefited from strong average transaction value and saw improvement throughout the quarter, with January having the strongest performance. The company experienced underperformance in the digital business during Q4, with comparable sales declining 13.4% in the quarter and down 8.7% for the year. Digital sales were pressured from softness in home, particularly in legacy home, which overpenetrates into the online business.

KSS in the fourth quarter of FY24 has reported the adjusted earnings per share of 95 cents, beating the analysts’ estimates for the adjusted earnings per share of 73 cents. The company had reported the adjusted revenue decline of 9.4 percent to $5.18 billion in the fourth quarter of FY24, which is inline with the analysts’ estimates for revenue of $5.18 billion.

Additionally, the company has declared a quarterly cash dividend on the Company’s common stock of $0.125 per share. The dividend is payable April 2, 2025 to shareholders of record at the close of business on March 21, 2025.

Kohl’s projected earnings per share in the range of 10 cents to 60 cents, compared with estimates of $1.23. Kohl’s expects 2025 comparable sales to decline 4% to 6%, compared with estimates for a 0.9% drop, according to data compiled by LSEG. The outlook recognized the uncertainty the consumer was facing as well as the tough macro environment, the company said. FY25 Capital Expenditures is expected to be in the range of $400 million to $425 million