Kohl’s saw its digital sales rise by 58 percent in Q2 2020 compared to last year as consumers continued to prefer shopping online over frequenting brick and mortar stores.
While the company’s digital sales saw a spike, its in-store sales were impacted by store closures in May. The company said it was forced to shut down 25 percent of stores in Q2, which resulted in a 23 percent decline in sales. A soft back-to-school season didn’t help either.
Although the company presented a conservative outlook for the rest of 2020, it remains bullish on its ability to capture a larger market share as several of its competitor’s fold.
“We’re really set up to capture what will be billions of dollars market share opportunity in the future,” said Chief Executive Michelle Gass on Tuesday during a conference call.
“Even in the midst of the pandemic, we are acquiring new customers and see great potential looking forward,” Gass explained. “We are leveraging our past strategies and increasing our marketing investment in locations where competitors are closing stores.”
Following the earning’s call, the company’s share value dropped by more than 15 percent even though it beat analyst expectations.
The company reported an adjusted non-GAAP net loss of 25 cents per share on $3.21 billion in net sales. Analysts had expected the company to lose 83 cents per share on $3.09 billion in revenue, according to PYMNTS.
Looking ahead, the company plans to focus on localizing its marketing efforts to acquire new customers as anchor department stores in mall locations continue to shut their operations.
“We have a playbook that we’ve used in past at a very localized level to go after those customers, new customer acquisition and go after that market share,” Gass said. “So we have begun to deploy that strategy for us.”
Ninety-five percent of Kohl’s 1,100 store locations are situated outside shopping malls, according to CNBC.