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May 20, 2020updated 21 Jul 2021 12:35pm

Kohl’s quits eight brands in bid to tighten apparel offering

By Hannah Abdulla

US department store chain Kohl’s is exiting eight “down-trending” womenswear brands as it moves to tighten up its apparel offering, following a 43.5% sales plunge and booking a loss in its most recent quarterly financial update.

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Kohl’s booked a 43.5% drop in first-quarter sales to US$2.16bn from $3.82bn in the prior-year period. For the three months to 2 May, net loss amounted to $541m, compared to net income of $62m a year ago, while gross margin narrowed to 17.3% from 36.8%. On a non-GAAP basis, adjusted net loss was $495m, compared to an adjusted net income of $98m last time.  

In a post-earnings analyst call, yesterday (19 May), the group said while it posted digital sales growth in all categories, apparel and footwear lagged overall growth.

The group is now looking at “modernising” its womenswear business. This will involve what CEO Michelle Gass called “several bold moves”.

“We will exit eight down-trending women’s private brands. These include Dana Buchman, Jennifer Lopez, Mudd, Candie’s, Rock & Republic, Popsugar, Elle and Juicy Couture. This will create space to introduce a more compelling and current offering to our customers while improving the overall clarity through reduced choice counts.”

Conversely, it is introducing several new brands that have a strong presence in the casualwear categories, including Lands’ End and Toms.

“Our team here is continuing to seek out other relevant brands to offer to our Kohl’s customers. We look forward to sharing more in the future,” said Gass.

“We think the combination of clarity, reducing choice count, fewer brands, really elevating our existing strong brands and then bringing in some newness that is highly relevant to our new customers, especially the millennial customer — we feel like we’re on a good path there.”

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Free Report
img

How can brands navigate the post-COVID-19 Apparel market?

In 2021, the Global Apparel market remained at 3% below pre-pandemic levels, with Europe and LATAM lagging behind. If they want to see full recovery, brands must look ahead. GlobalData is therefore offering this free report, Future of the Apparel Market Post Pandemic, to assist companies in adapting to the future market. This report explores the following topics:
  • Latest forecasts for the online apparel market out to 2025
  • How different regions and categories will perform, including which regions are lagging behind and which are performing at pre-pandemic levels
  • Which categories within the Apparel market are displaying resilience
  • Which brands are driving online spending
  • Impact of inflation on the Global Apparel market
  • What the biggest trends are that apparel businesses must adopt to succeed
Read our report on the Future of the Apparel Market Post Pandemic to gain valuable insights on how to best position your brand in a post-COVID-19 world.
by GlobalData
Enter your details here to receive your free Report.

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