Kohl’s Corporation (NYSE: KSS) is a leading omnichannel retailer in the United States, operating more than 1,100 stores and serving over 60 million customers. The company reported its fourth-quarter and full-year financial results for fiscal year 2024, indicating a significant decline in performance. For the fourth quarter, net sales decreased by 9.4% year-over-year to $5.2 billion. The fiscal year 2024 saw a decrease in net sales of 7.2% to $15.4 billion.

Comparable sales fell 6.7% in the fourth quarter and 6.5% for the fiscal year. The decline in comparable sales was impacted by a 53rd week in the previous fiscal year, which accounted for approximately $164 million in sales. Store comparable sales down 3.1% for the fourth quarter and a decrease of 5.6% for the year. The digital segment experienced a more pronounced decline, with comparable digital sales decreasing 13.4% in the fourth quarter.

Kohl’s gross margin increased by 49 basis points year-over-year to 32.9% in the fourth quarter, driven mainly by optimized promotional events and lower digital penetration. For the full year, the gross margin improved by 50 basis points to 37.2%. Selling, general, and administrative expenses decreased 4.5% in the fourth quarter to $1.5 billion and declined 3.7% for the full year to $5.3 billion, leading to a rise in SG&A as a percentage of total revenue by 148 basis points to 28.5% in the fourth quarter.

Operating income stood at $126 million for the fourth quarter, significantly lower than $299 million from the previous year. For fiscal year 2024, operating income reached $433 million, down from $717 million in the prior year. Net income for the fourth quarter was $48 million, or $0.43 per diluted share, compared to $186 million, or $1.67 per diluted share, a year ago. Adjusted net income for the fourth quarter was $106 million, translating to adjusted diluted earnings per share of $0.95. For the year, adjusted net income was $167 million, with adjusted diluted EPS of $1.50.

In terms of balance sheet health, inventory increased 2% year-over-year to $2.9 billion. Kohl’s closed 27 underperforming stores, with a related onetime charge of $76 million during the fourth quarter. The company generated operating cash flow of $596 million in the fourth quarter and $648 million for the full year. Kohl’s board announced a quarterly cash dividend of $0.125 per share, payable on April 2, 2025.

Looking ahead, Kohl’s provided guidance for fiscal year 2025, estimating a decrease in net sales of 5% to 7%, and a comparable sales decline of 4% to 6%. Operating margin is expected to be in the range of 2.2% to 2.6%, with diluted EPS forecasted between $0.10 to $0.60. Capital expenditures are projected between $400 million to $425 million as the company focuses on strengthening its private brand offerings and enhancing omnicommerce capabilities.