(Sharecast News) - American department store giant Kohl's reported first-quarter results that exceeded analyst expectations on Thursday, narrowing its net loss and delivering a smaller-than-expected decline in comparable sales.
The performance offered some relief for the embattled chain, which was undergoing leadership upheaval following the recent dismissal of CEO Ashley Buchanan.

For the quarter ended 3 May, Kohl's posted a net loss of $15m, or 13 cents per share, compared to a $27m loss, or 24 cents per share, a year earlier.

Analysts had anticipated a loss of 22 cents per share.

Revenue fell 4.1% year-on-year to $3bn, slightly above market expectations, while comparable sales declined 3.9%, also faring better than the forecasted 4.1% drop.

Gross margins improved by 37 basis points to 39.9%, and operating income rose to $60m from $43m.

Despite the better-than-expected quarter, Kohl's reiterated its cautious full-year guidance, projecting net sales to decline between 5% and 7%, with comparable sales down 4% to 6%.

Full-year earnings per share were forecast to range between 10 and 60 cents, well below the analyst consensus of 67 cents.

The company also declared a quarterly dividend of 12.5 cents per share, payable in June.

Kohl's earnings release came amid a leadership transition, after Michael Bender was appointed interim CEO following Buchanan's dismissal "for cause" in early May.

That came following an internal investigation that found he had directed business to a vendor linked to a personal relationship.

Bender is the fourth person to lead the company in three years.

"Our first quarter performance was ahead of our expectations and the actions we are taking are starting to make progress with early signs of a positive impact," Bender commented.

"Our team is focused and motivated to deliver great products, great value, and a great shopping experience to our customers.

"I am excited to lead this next chapter of Kohl's and build on the momentum we have begun to generate."

Investors reacted positively to the results, sending Kohl's shares up over 6% in early trading, though the stock remained down significantly year-to-date.

Analysts were still rating Kohl's as a hold, citing ongoing challenges in demand, operational strategy, and leadership stability.

At 0917 EDT (1417 BST), shares in Kohl's Corporation were up 7.65% in premarket trading in New York, at $8.72.

Reporting by Josh White for Sharecast.com.

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