US department store chain Kohl’s reported net losses of $ 541 million (€ 494.1 million) in its first fiscal quarter, ended in early May, compared to profits of € 62 million (€ 56.6 million) ) of the same quarter of the previous year, as indicated by the company this Tuesday in a statement.
The large change in the signature result corresponds to the impact of the Covid-19 pandemic, to which almost all of the United States’ state governments responded by confining the population and closing retail stores. In this way, Kohl’s revenues sank 41% in the quarter, to 2,428 million dollars (2,217.5 million euros).
On the other hand, the cost of the products sold was 1,787 million dollars (1,632.1 million euros), 26% less, while the item of selling, general and administrative expenses contracted 16.4% , up to 1,066 million dollars (973.6 million euros).
“Our actions to manage the cash outflow and increase liquidity have been key to improving our position to manage this crisis and we believe that our history of prudent capital management will be useful to us,” said the company’s CEO, Michelle Grass. .
The Kohl’s chief executive added that although 50% of its stores have already opened, the impact of the Covid-19 will be “long-lasting” on consumer behavior.