Coles On Thursday, retailers faced increasing pressure on sales from activists, and final and fully funded bids from potential buyers are expected in the coming weeks.
“We are pleased with the many stakeholders who appreciate the value of our business and plans,” said Michelle Gass, CEO.
Retailers’ inventories rose slightly early in the transaction after the company recorded a significant earnings error in the first quarter, significantly lowering its annual profit and sales outlook. Gus said in a press release that 2022 began below her expectations.
Household and children’s items were the biggest slumps, but men’s clothing was one bright spot.
“April sales fell sharply as we encountered macro headwinds related to last year’s stimulus wrapping and inflationary consumer environment,” Gus said. However, she said that as the weather warmed up in May, more and more people went to the store to buy new spring clothing and accessories.
Coles joins the growing list of major retailers, including: Walmart When GoalIn the midst of 40 years of high inflation, logistics and labor costs are digging into profits.These companies also have Started watching American consumers adjust spending behavior Because they face higher prices in everything from milk to training clothes. Coles said Thursday that he did not expect inflation to decline in the near future.
Coles now expects adjusted earnings per share for 2022 to be $ 6.45 to $ 6.85, compared to the previous forecast of $ 7.00 to $ 7.50.
Net sales are expected to level off from the previous year’s level to 1%, compared to previous guidance of 2% to 3%.
This is Coles 3 months until April 30According to an analyst survey by Refinitiv, compared to what Wall Street expected:
- Profit per share: 11 cents vs. 70 cents forecast
- Revenue: $ 3.72 billion vs. expected $ 3.68 billion
Coles’ first-quarter net income was $ 14 million (11 cents per share) compared to $ 14 million (9 cents per share) in the year-ago quarter. This fell short of analysts’ expectations of 70 cents per share.
Sales exceeded analysts’ estimated sales of $ 3.68 billion, but decreased from $ 3.89 billion in the previous year to $ 3.72 billion.
Equivalent sales fell 5.2%, according to Coles. Analysts were looking for a 0.5% increase.
The disastrous consequences from Coles are in the midst of a retailer’s much-watched sales process. Coles has faced the pressure to find new owners since activist hedge funds. In January, Macellum Advisors urged the company to do so. Gas claims it hasn’t done enough to increase sales.
Macellum was also pushing for a review of Kohl’s board, but with no success. last week, Cole shareholders voted to re-election the current slate of 13 directors, Defeat Macellum’s suggestion. Still, the activist group replied that it would be responsible for Coles’ decision within the next few months.
Gas, who became CEO at Coles in May 2018, is trying to attract customers to the store. Amazon And add Sephora Beauty Shops to hundreds of places on the call. The company has also invested heavily in the activewear business as more consumers demand more comfortable clothing than dresses and blazers.
However, there is growing skepticism about whether the gas program is paying off.
Neil Saunders, Managing Director of Global Data Retail, said:
Coles said in a securities filing Wednesday evening: Its Chief Merchandising Officer and Chief Marketing Officer Depart Retail company. A spokesman said the search for his successor was already underway.
Longtime merchandising executive Ron Murray will be the interim chief merchandising officer, the company said. Christie Raymond, Vice President of Customer Engagement, Media and Analytics, will be Interim Chief Marketing Officer.
Cole’s share has fallen by about 11% so far this year.
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