Kohl’s Corp. reported a slight drop in holiday sales, reinforcing concerns that department stores lost ground despite robust growth in U.S. consumer spending. Shares fell as much as 9.4 per cent in early trading.

Same-store sales, a key measure of retail success, declined 0.2 per cent in November and December, the company said in a statement. Kohl’s also said profit for fiscal 2019, which ends in February, will be at the low end of its previously announced range of US$4.75 to US$4.95 a share.

Key Insights

• Chief Executive Officer Michelle Gass said strength in e-commerce, beauty, footwear and other areas was offset by weakness in women’s apparel, “which we are working with speed to address.”

• Kohl’s follows Macy’s Inc. in reporting a decline in holiday comparable sales. That’s a sign that department stores continue to stumble in the critical holiday shopping months.

• Gass said Kohl’s will release more details about “key growth initiatives” at an upcoming meeting with investors.

Market Reaction

• Kohl’s shares fell as low as US$44.75 in early trading, before paring some of the loss. They traded down 5.9 per cent to US$46.47 as of 7:23 a.m. in New York.