Kohl’s removes Jennifer Lopez, Juicy Couture and six other women’s brands as losses mount

Kohl’s Corp mentioned the coronavirus disaster would have a fabric influence on outcomes this yr because it eliminated eight manufacturers together with Jennifer Lopez, Juicy Couture and Popsugar from its shops and warned demand for girls’s attire would stay weak.

Shares within the division retailer chain, which shut shops throughout the United States resulting from lockdowns to halt the pandemic, fell about 8% after it reported a bigger-than-expected first-quarter loss.

The mid-priced chain reported a 24% surge in on-line gross sales within the quarter and greater than 60% in April and mentioned it had now reopened almost half its U.S. shops as lockdowns eased.

For the quarter ended May 2, nonetheless, web gross sales fell about 44% to $2.16 billion and the corporate reported a web lack of $541 million.

Excluding objects, it misplaced $3.20 per share, far worse than forecasts of a $1.80 loss, based on Refinitiv knowledge.

“Our financial performance, like many other retailers, will be materially impacted by COVID-19 in 2020,” Chief Executive Officer Michelle Gass advised a post-earnings name.

The outcomes observe chapter filings by friends J.Crew, Neiman Marcus and J.C. Penney on the again of giant losses racked up within the two months since U.S. states started issuing stay-at-home orders.

Kohl’s had been struggling in ladies’s attire even earlier than the pandemic as customers shifted to on-line buying and fast-fashion manufacturers.

“Exiting them (the 8 brands) will create focus and clarity on the brands that will continue,” Gass mentioned. “We’re still highly committed to the women’s business. In the short term, we’re facing some challenges here.”

Kohl’s, which has partnered with Jennifer Lopez for a few decade and commenced promoting Juicy Couture in shops in 2014, may even stop promoting Dana Buchman, Mudd, Candie’s, Rock And Republic and Elle.

(This story has been revealed from a wire company feed with out modifications to the textual content. Only the headline has been modified. )

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