Kohl's Corporation has reported its financial results for the fourth quarter and full year fiscal 2023. In the fourth quarter, net sales decreased by 1.1% to $5.7 billion, and comparable sales decreased by 4.3%. The gross margin as a percentage of net sales increased by 937 basis points, and operating income was $299 million compared to a $302 million loss in the prior year. Net income for the fourth quarter was $186 million, or $1.67 per diluted share, a significant improvement from the net loss of $273 million, or ($2.49) per diluted share in the prior year. Operating cash flow for the fourth quarter was $789 million, and inventory decreased by 10% year-over-year to $2.9 billion.
For the full fiscal year 2023, net sales decreased by 3.4% to $16.6 billion, and comparable sales decreased by 4.7%. The gross margin as a percentage of net sales increased by 347 basis points, and operating income was $717 million compared to $246 million in the prior year. Net income for the full year was $317 million, or $2.85 per diluted share, a significant improvement from the net loss of $19 million, or ($0.15) per diluted share in the prior year. Operating cash flow for the full fiscal year was $1.2 billion.
Looking ahead to fiscal year 2024, Kohl's expects net sales to decrease by 1% to increase by 1%, and comparable sales to be in the range of 0% to 2%. The company also anticipates an operating margin in the range of 3.6% to 4.1% and diluted earnings per share in the range of $2.10 to $2.70, excluding any non-recurring charges. Additionally, the capital expenditures are expected to be approximately $500 million, including the expansion of the Sephora partnership and other store-related investments.
Kohl's is committed to further strengthening its balance sheet and returning capital to shareholders through dividends. The company's board of directors declared a quarterly cash dividend on the common stock of $0.50 per share, payable on April 3, 2024.
Tom Kingsbury, Kohl's Chief Executive Officer, expressed confidence in the company's strategic initiatives and its potential for future growth. Kingsbury highlighted the early success of the company's strategies, including enhancements to the store experience, expansion of the partnership with Sephora, and investments in underpenetrated categories. He also emphasized the company's focus on delivering comparable sales growth in 2024 and the potential for meaningful expansion in the baby gear category through a partnership with Babies “R” Us.
Today the company's shares have moved -0.4% to a price of $27.09. If you want to know more, read the company's complete 8-K report here.
