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For years, we have heard of the fall of the shopping center, which seems to disappear in the digital age. But some Shopping center - like Abercrombie, Gap and American Eagle - recently avoided the fate for which they seemed intended, pointing out sales record in 2024. Of course, this is not true for all well -known retailers of the shopping center. New data show that buyers always abandon Kohl, who have just seen another drop in sales.

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In a May 30 Press release Kohl's declared a 5.3% drop in net sales and a 4.4% drop in comparable sales (comparable stores) in the first quarter of 2024. The retailer also declared a net loss of $ 27 million (loss of $ 0.24 per share).

According to CNBC, Kohl's shares fell 20% one day percentage drop Never. Kohl lowered her Estimates For the year also. The retailer now predicts a drop of 2 to 4% of net sales, as opposed to somewhere between a drop of 1% and an increase of 1%, reported Reuters.

"Our first quarter results did not meet our expectations and do not reflect management that we are going with our strategic initiatives," said Kohl CEO Tom Kingsbury said in the press release.

For a May 30 Post-Bait Call , Kingsbury noted that Kohl had "a high release activity" at the same period in 2023, which made a difficult comparison. He also underlined the pressure that average income customers are faced with high interest rates and inflation.

"Although expenses among our high income customers have remained stable, our intermediate income client continues to be assigned," Kingsbury told Investors. "In this environment, we work hard to offer even more value, recognizing that the discretionary expenses of our customers are under pressure."

Addressing CNBC, Kingsbury said that bad weather in the past five weeks of the first quarter had also had a negative impact on sales. Consequently, customers did not spend seasonal goods or spring clothes.

"Fortunately, we see him come back as time is improving," said the CEO. AE0FCC31AE342FD3A1346EBB1F342FCB

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But while Kingsbury is optimistic, Kohl sales have been down for some time. As Neil Saunders of the GlobalData research firm said Wall Street's journal , sales have falling 16.8% Since 2019. Saunders estimates that Kohl has lost around 1.5 million customers within the same period.

According to the explanation of Saunders, Kohl's does not earn enough money to cover the payment of interest on his debt. This means that there is also less money to upgrade stores.

But it is not for lack of trying. Kohl's actively tries to recover sales thanks to its introduction from Sephora and Babies R US stores in store, as well as other initiatives. For the moment, experts say that this strategy is not effective.

"Kohl's has too dependent on other brands such as Sephora, Amazon and now babies to generate traffic rather than distinguishing his main brand identity," said a main Emarketer analyst Zak Stamar told Reuters. Buyers are more ready to spend in a store like Abercrombie, where they can buy trendy and well -made clothes, Stambor said.

However, Kohl noted certain positive points in the first quarter, including progress in the women's category and "strong continuous growth in Sephora," Kingsbury said in the press release. The retailer also managed to lower stocks by 13%, said the CEO.