Kohl's Faces Sharp Sales Decline and Turnaround Challenges

Kohl's Corporation reported a significant decline in financial performance for the fourth quarter and fiscal year 2024, with net sales dropping 9.4% and 7.2%, respectively. The company's operating income fell sharply, and net income decreased to $48 million from $186 million in the same quarter the previous year. New CEO Ashley Buchanan, who stepped into the role in January, has warned that the turnaround will take time, and the company anticipates further sales declines of 5% to 7% in 2025. Buchanan has initiated cost-cutting measures including layoffs and store closures, and the dividend has been reduced from $0.50 to $0.125 per share. Despite efforts to reposition the company and introduce new products, shares plunged to a near three-decade low due to these disappointing forecasts and challenging market conditions. Analysts express skepticism about the success of the turnaround strategy, citing long-standing issues and external economic pressures.