By Jarrett Banks
Department-store chain Kohl’s Corp. (NYSE: KSS), which owns brands like Sephora, Eddie Bauer and Columbia, reported its second quarter results were impacted by high inflation and lower consumer spending.
Second quarter comparable sales decreased 7.7% and net sales fell 8.5%, it said in a statement. Still, Kohl’s private brands outperformed national brands for the second consecutive quarter, indicating the company’s ability to fulfill the needs of customers looking for greater value, it said.
Sephora acquired more than 1 million new customers since last August with younger and more diverse customers who shop more frequently than the average customer, it said, adding that 250 additional shops will open in 2023, bringing the total number of 2,500-sq. ft. stores to 850.
“While 2022 has turned out to be more challenging than initially expected, Kohl’s remains a financially strong company with significant long-term growth potential,” said CEO Michelle Gass. “Our $500 million accelerated share repurchase underscores our steadfast confidence in Kohl’s future and focus on creating shareholder value.”