Spring retail funk hits Kohl’s as Q1 profit plunges

Call it a spring retail funk. The day after Macy’s posted disappointing results for its first quarter, Kohl’s Corp. upped the ante, reporting an 87% drop in net income amid heavy one-time costs.



Kohl’s net income for the three months that ended April 30, was $17 million, down 87% from the $127 million Kohl's earned in the year-ago period. Excluding impairments, store closings and one-time costs, net income was $58 million, down 55%.



Revenue totaled $3.97 billion, down from $4.12 billion in the year-ago period.



Same-store sales fell 3.9%.



While unseasonably warm weather contributed to a not great holiday season for many retailers, a wet and cool spring in many parts of the country and an unusually early Easter helped damper sales of spring apparel.



“First quarter sales were challenging,” said CEO Kevin Mansell. “Despite the sales environment, we were able to manage our gross margin and inventory levels consistent with our expectations as we took the markdowns necessary to clear excess inventory. We managed our expenses effectively throughout the quarter as every area contributed to our savings versus our plan."