(Reuters) -Kohl’s on Tuesday forecast a bigger drop in annual sales than previously expected, in a sign the department-store chain is struggling to draw in shoppers ahead of a deal-heavy holiday shopping season.
Shares of the Menomonee Falls-based company were down about 11% before the bell, as it also posted the eleventh consecutive quarter of decline in same-store sales of 9.3%.
Higher prices of groceries and other essentials have stretched consumer budgets, particularly among middle-income shoppers, keeping them from visiting shopping centers and splurging on apparel and footwear.
The company announced the exit of its CEO Tom Kingsbury, who is to be succeeded by retail veteran and former Michaels Companies (NASDAQ:MIK) chief Ashley Buchanan in January, it said after market close on Monday.
The CEO’s surprise departure comes as the company enters the critical holiday shopping period including Black Friday, one of the busiest times for retailers and shoppers.
Under outgoing Kingsbury, Kohl’s (NYSE:KSS) had focused on improving product assortment in home decor, gifts and kid’s clothing categories as part of the company’s turnaround efforts, in response to its slowing core apparel and footwear business.
Customer visits to Kohl’s dropped 6.2% in the third quarter on average, compared to a 3% fall in the previous three months, according to foot traffic data from Placer.ai.
The company, now expects full-year net sales in the range of a 7% to 8% decline, compared to its prior forecast of a drop between 4% to 6%. This is Kohl’s third straight quarter with a lowered sales forecast.
