What: Kohl’s will be focusing more on beauty, dressed up casual apparel, and gifts and pets as part of its turnaround efforts under its new CEO.

Why it is important: The retailer’s turnaround strategy is showing some progress in stabilizing the business as its bottom line stayed flat for Q1.

Net income for the quarter was USD 14 million compared to USD 14 million last year while sales decreased 3.3% to USD 3.36 billion from 3.47 billion.

Kohl’s new CEO stated that first quarter results were in line with the company’s expectations as they work towards driving sales and earnings performance over the long term.

The retailer saw a 6% reduction in inventory and its stores achieved productivity gains while Sephora at Kohl’s also continued its sales momentum

Kohl’s is making progress towards its 2023 key priorities which include enhancing customer experience, simplifying value strategies, managing inventory and expenses with discipline, and strengthening its balance sheet.

Investors were pleased with the results, as the stock price increased 7.45% to close at USD 20.72.

Beauty sales increased 150% year over year and the retailer plans on expanding Sephora to more than 900 stores by the end of the year.

Kohl’s is focusing on rebuilding its core business and growing underrepresented categories such as gifting, pet, décor, impulse, and outdoor.

In the apparel category, the retailer is adding dressier casual clothing for women and more suits and dress shirts for men.

The children’s category outperformed the company average with positive growth in active and dress clothing; similarly to men’s and women’s the retailer plans to also add more dressier options.

As for improving the shopping experience, Kohl’s is consolidating checkouts to one central location, adding self-checkout in 250 stores, and simplifying its graphics and signage for better navigation.

Kohl’s has opened two stores this year, with five more planned including one relocation.

The turnaround efforts by Kingsbury and the retailer’s new chief merchandising and digital officer are expected to be felt more in the later half of this year.

Kohl’s Corp. sees beauty, ‘dressy’ casual clothes among keys to driving turnaround