The consumer faces dire times: Kohl’s slashes prices 85%, rice prices soar drastically.

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The midmarket department-store chain slashed its guidance for the full year after reporting first-quarter results that wildly missed on just about every metric. Comparable sales, which measure the performance of stores open at least one year, fell 4.4% in the quarter ended May 4 — the ninth consecutive decline. Analysts had expected a 1.7% drop.

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Although Kohl’s offered deep discounts in the period, the company said sales of clearance items actually declined, leading to the miss on comparable sales. On the company’s website Thursday, it was hawking sales of as much as 85% off.

The stock tumbled as much as 27% in New York trading, the most on record. The shares had declined 5% this year through Wednesday, compared with a 9.7% gain for the Russell 1000 Index.

“Our customers continue to be pressured by a number of economic factors, including high interest rates and inflation,” Chief Executive Officer Tom Kingsbury said on a conference call. “While spending among our high-income customers has remained steady, our middle-income customer continues to be impacted.”

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https://finance.yahoo.com/news/kohl-plunges-results-miss-estimates-111437585.html


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