Kohl's Corporation decreased its corporate headcount by roughly 15 percent as it took different measures to “further align its cost base” in response to the impact of the coronavirus on its business, according to an 8-K filing with the U.S. Securities and Exchange Commission (SEC).
Kohl’s said it foresees costs of roughly $23 million before tax for the actions, most of which will be registered in Q3 of this year. However, the merchant said it foresees roughly $65 million in cost savings from the measures on an annualized basis.
“Together with the Company’s February 2020 restructuring actions, the Company expects expense savings generated from these actions of more than $100 million on an annualized basis,” the company said in the filing.
Kohl’s reported in August that its digital sales jumped 58 percent in Q2 compared to the prior year, as net sales dropped 23 percent amid COVID-19. Kohl’s CEO Michelle Gass said at the time that the pandemic had sped up changes that had been ongoing for a while. “Customers are adopting more active and casual lifestyles, and they are shopping more digitally,” she said in an earnings call.
Kohl’s reported a $39 million adjusted non-GAAP net loss on net sales of $3.21 billion. The results came out ahead of analyst expectations of a loss per share of 83 cents on revenue of $3.09 billion.
“We are a well-disciplined operator, leveraging our strong financial position to effectively navigate through this crisis,” Gass said at the time.
In September, Kohl’s announced that it launched its new Kohl’s Rewards loyalty program across the nation following a successful pilot in multiple places. Customers who opt into the program will accrue 5 percent Kohl’s Cash regardless of “when or how” they opt to buy. In addition, shoppers will also get customized promotions and incentives throughout the year, in addition to a birthday gift with the offering.