(Reuters) -Kohl’s Corp beat estimates for quarterly profit on Wednesday, as leaner inventories, lower costs and fewer discounts helped the department store chain to counter a broader retail slowdown.
Shares of Kohl’s, which fell more than 10% on Tuesday, were up 5% in premarket trading as the company stuck to its 2023 forecasts.
Inventory declined 14% during the quarter as Kohl’s undertook stock clearance, leading to a 61 basis points drop in gross margin.
The company earned 52 cents per share in the second quarter ended July 29, above analysts’ estimates of 22 cents.
The retailer maintained its forecast for per-share earnings of $2.10 to $2.70 and a drop in net sales of 2% to 4% for fiscal 2023.
(Reporting by Savyata Mishra in Bengaluru; Editing by Anil D’Silva)
