Kohl’s Stock Rises On Reported Workforce Cuts: Retail’s Bullish
The retailer plans to cut nearly 10% of its corporate workforce in a bid to boost profitability.
![Kohl’s Stock Rises On Reported Workforce Cuts: Retail’s Bullish Kohl’s Stock Rises On Reported Workforce Cuts: Retail’s Bullish](https://static-gi.asianetnews.com/images/external/image-10de9a29-2bc3-4740-8262-64d953f234de_363x203xt.jpg)
Shares of Kohl’s Corp ($KSS) rose 0.4% in after-hours trading on Tuesday as reports surfaced about the retailer’s corporate workforce reduction plan, reviving retail sentiment.
According to several media outlets, Kohl’s will cut nearly 10% of its corporate workforce in a bid to boost profitability. The company said more than half of the total reductions would come from closing unfilled positions, while the remaining held by personnel at its Menomonee Falls, Wis., headquarters, WSJ reported.
“Knowing the impact this has on our associates, we took this decision very seriously,” a Kohl’s spokesperson was quoted as saying by SpectrumNews.
The layoffs come on the heels of Kohl’s recent plan to close 27 of its “underperforming stores” in April. According to media reports, store closures and the corporate workforce reduction “are both actions to support the company’s commitment to increase efficiencies and improve profitability.”
Sentiment on Stocktwits improved to ‘bullish’ from ‘neutral’ a day ago. Message volumes were in the ‘normal’ zone.
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Kohl’s third-quarter earnings last month fell short of Wall Street estimates recently as it witnessed weak sales in apparel and footwear businesses. Its net sales decreased 8.8% and comparable sales decreased 9.3%.The company is expected to report fourth-quarter results in March.
Earlier this month, Kohl’s new CEO, Ashley Buchanan, joined the firm. Buchanan was formerly CEO of crafts retailer Michaels and is reportedly entrusted with turning around the retailer’s business and attracting younger customers.
Kohl’s currently has more more than 1,150 locations, according to the a recent statement.
Kohl’s stock is down 3.42% year-to-date.
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