Kohl’s Corp. on Thursday posted a 20 percent drop in fourth-quarter profit on continued tepid sales growth and announced plans to close 18 underperforming stores and test a smaller format store.
In the most-recent quarter, sales growth at established stores fell below expectations to 0.4 percent from 3.7 percent a year before. Still, CEO Kevin Mansell said it was the fifth consecutive quarter of positive comparable sales increases. “I am particularly encouraged by the 4 percent increase we saw between Thanksgiving and Christmas,” he said.
Kohl’s said it would close 18 underperforming stores this year, representing less than 1 percent of sales. The company expects to announce which stores will close at the end of March.
The retailer said it also plans to test a smaller format Kohl’s store. Kohl’s plans to open seven of those stores in various regions around the country, as well as add in Wisconsin and open 12 outlet stores, marking the company’s first entry into the outlet space.
