Kohl’s Amazon deal is single ‘biggest initiative of the year,’ CEO says
Earlier Tuesday, Kohl’s (KSS) reported a fiscal first-quarter net income of $62 million. The Wisconsin-based company said it had a profit of 38 cents. Earnings, adjusted for asset impairment costs, came to 61 cents per share.
The department store operator posted revenue of $4.09 billion in the period, falling short of Wall Street forecasts. 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.
Kohl’s said plans for the year were made more conservatively due to increased costs from tariffs. Changes were also instituted to become more competitive. Still, February was a slow month while March and April experienced some improved trends.
Tuesday’s stock news follows an April announcement in which the store said it would accept returns for Amazon customers at all of its more than 1,150 U.S. locations starting this summer. On a conference call Tuesday, Gass called the new program the “single biggest initiative of the year.”
The company said returns for eligible items will be accepted for free beginning on July 1 without a need for the original box or a shipping label. The service was originally available only in Los Angeles, Chicago and Milwaukee as part of a pilot program.
“Amazon and Kohl’s have a shared passion in providing outstanding customer service, and this unique partnership combines Kohl’s strong nationwide store footprint and omnichannel capabilities with Amazon’s reach and customer loyalty,” Gass said at the time.
Fox Business’ Kathleen Joyce and Thomas Barrabi contributed to this report.