Kohl’s Corporation: A Story Of Enhancing Gross Margins through Inventory Management!

Kohl’s Corporation announced its first-quarter 2024 earnings, delivering results that fell short of the company’s expectations. The company faced a difficult comparison with last year’s profits due to last year’s elevated clearance activity, which generated a significant drag on comparative sales in Q1. While clearance is generally a headwind for the business, the level going into 2023 was described as unique and unlikely to be repeated. However, Kohl’s did see a low single-digit increase in its regular price sales, marking its best quarterly comparative performance since 2018. This sales boost is primarily fuelled by a success in new categories and continuing growth in Sephora.