Kohl's slashes sales forecast amid struggling holiday shopping

In the United States, Kohl's department store chain has announced a disappointing forecast regarding its annual sales, projecting a more significant decline than previously expected. This prediction comes as the company is grappling with an ongoing struggle to attract shoppers amidst a transition in leadership, with the exit of former CEO Tom Kingsbury who will be succeeded by Ashley Buchanan in January. The retailer's stock plummeted 18% in early trading following the announcement, indicating a loss of investor confidence as the company approaches a critical holiday shopping season. The company's third-quarter results revealed earnings of only 20 cents per share, falling short of the expected 28 cents. Kohls' comparable sales decreased by 9.3% for the quarter ended November 2, marking the eleventh consecutive quarter of sales declines. Analysts had anticipated only a 5.1% decrease. The ongoing decline in sales has raised concerns within the retail sector, particularly as consumers appear to be increasingly bargain-focused, potentially turning to competitors like Walmart and Amazon for their holiday shopping needs. Kohl's has implemented various strategies to counteract these declining sales figures, such as introducing aggressive discounts and hosting early Black Friday events. Specifically, they ran a three-day early access event from November 8 to 10 and planned to continue with additional Black Friday sales from November 24 to November 29. However, the transition period for their Sephora rollout seems to have hindered their performance, as analysts suggest that the initial sales potential has already been exhausted, which resulted in the company's disappointing earnings report. As the timeline approaches the critical holiday shopping season, concerns remain high regarding how Kohl's, now without its longstanding CEO, will adapt to changing consumer behaviors and increased competition. The future of the department store chain seems uncertain, and it will be pivotal to observe how they navigate this challenging retail landscape in the coming months and whether the anticipated new leadership can revitalize the brand and improve performance.