The turnaround plan at Kohl's isn't working

Kohl’s has joined other major retailers this week reporting disappointing earnings and anemic same store sales growth.

The Wisconsin-based retailer posted a profit of $130 million in the second quarter ended Aug. 1, below the $232 million in the prior-year quarter. Earnings per share were 66 cents, compared with $1.13 in the second quarter of 2014. Same store sales grew a measly 0.1%. Overall revenue increased by just 0.6%, to $4.27 billion for the quarter.

Kevin Mansell, Kohl's chairman, chief executive officer and president, said: "Our sales results were below our plan as the shift of sales in tax-free states from July into August was larger than anticipated. Our expenses were well managed for the season. Our inventory receipts are well-positioned for the back-to-school and fall seasons."

Kohl’s joins Macy’s, Dillards and others reporting lackluster financial results this week.

Up until a few years ago, Kohl’s was one of the fastest-growing retailers ever. Shoppers loved the stores, the coupons and the prices. But ever since 2013, the company has lots it way, resulting in same store sales declines and shrinking profits.

Kohl’s ended the quarter with 1,164 stores in 49 states, compared with 1,160 stores at the same time last year.

Looking ahead, the company now expects its fiscal 2015 earnings per diluted share to be at the low range of its previous guidance of $4.40 to $4.60.