(Reuters) – Kohl’s Corp cut its full-year earnings forecast on Thursday, joining some of America’s biggest retailers in warning that a four-decades high inflation is starting to take a toll on profit margins and consumer spending power.
Kohl’s shares have fallen about 11% this week as profit warnings from Walmart Inc and Target Corp added to fears of a slowing U.S. economy and the scale of damage surging costs are wreaking on retailers’ margins.
“Sales considerably weakened in April as we encountered macro headwinds related to lapping last year’s stimulus and an inflationary consumer environment,” Kohl’s Chief Executive Officer Michelle Gass said.
The company, which is considering selling itself, said it expects fiscal 2022 per share adjusted earnings of $6.45 to $6.85, compared with its previous forecast of $7.00 to $7.50.
Kohl’s said it expects fiscal 2022 net sales to rise only as much as 1%, compared with its previous forecast of a 2% to 3% increase.
(Reporting by Uday Sampath in Bengaluru; Editing by Shounak Dasgupta)
