Earnings for Kohl's and Macy's, Foot Locker's New Distribution Center

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Kohl's and Macy's reported earnings for the most recent quarter this morning. We're looking at how they fared and also discussing Foot Locker's new distribution center.

Here's what you need to know.

Kohl’s Withdraws Full-Year Outlook

Kohl’s is the latest retailer to report consumer pullback in Q3 amid inflation.

The retailer pulled its guidance for the full year and did not share projections for Q4, citing “macroeconomic headwinds” and its recent CEO transition.

In Q3, Kohl’s was hit by a pullback in spending from middle-income consumers, who purchased fewer items per trip and traded down to cheaper brands, said Kohl’s CFO Jill Timm in a call with investors.

Macy’s Reports Better-Than-Expected Q3 Earnings

Shares for Macy's were up 12.28% on Thursday after reporting third quarter revenue and earnings that topped Wall Street expectations.

The New York-based department store chain posted net sales of $5.23 billion in the third quarter of 2022, down 3.9% versus the same time last year but up 1.1% versus the third quarter of 2019. This quarter’s sales figures beats Refinitiv estimates of $5.2 billion.

On the company’s earnings call on Thursday, Macy’s chairman and CEO Jeff Gennette noted that “compelling product, disciplined inventory controls and solid execution” drove strong top and bottom line results in Q3.

Foot Locker Opens Distribution Center in Reno

Foot Locker has opened a new distribution center in Reno, Nevada.

The 465,000 square foot center will serve more than 300 stores on the West Coast, process more than 20 million units and employ 200 full-time workers. The center, which will be Foot Locker’s second largest in the US, represents a more than $40 million investment and will help cut down shipping times in the region by more than 50%, Foot Locker said.

The announcement comes shortly after Foot Locker said it would permanently close a distribution center in Wausau, Wisconsin and lay off 210 employees through April.

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