Kohl’s executive says retailer to change pricing, promotions amid poor quarterly earnings: report

By MarketsFOXBusiness

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On the heels of disappointing results in Kohl’s fiscal first-quarter earnings on Tuesday, a company executive reportedly said some adjustments were on the horizon to incentivize customers.

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The changes pertain to store prices and promotions, the company’s chief financial officer Bruce Besanko said Tuesday, according to USA Today. He reportedly characterized the price changes as being “surgical” in nature.

“We know our customers are driven by value, and so we’re going to make the necessary changes to pricing and promotion to help drive that,” Besanko said during a call with analysts. “We’re not going to lose out, as a consequence of pricing, to competitors.”

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Offering an optimistic tone, Besanko reportedly described the earnings outcome as “a speed bump” that company leaders plan to get through and “regain the momentum.”

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KSSKOHL'S CORP.49.33+0.76+1.56%

Kohl’s reported a fiscal first-quarter net income of $62 million. The Wisconsin-based company said it had profit of 38 cents per share. Earnings, adjusted for asset impairment costs, came to 61 cents per share. The results missed Wall Street expectations. The department store operator posted revenue of $4.09 billion in the period, also falling short of Wall Street forecasts.

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Kohl's expects full-year earnings to be in the range of $5.15 to $5.45 per share. Kohl’s shares have decreased 5 percent since the beginning of the year.

Fox Business’ Kathleen Joyce contributed to this report.