(Reuters) -Department store chain Kohl's cut its annual sales and profit forecast on Thursday after posting a surprise quarterly loss, on weaker consumer demand for its apparel and footwear, dragging its shares down 22% in premarket trade.

American consumers are prioritizing essential purchases over non-essentials like apparel, electronics and home goods, as they are faced with the resumption of student loan repayments, dwindling pandemic-era savings and higher interest rates.

"We are approaching our financial outlook for the year more conservatively given the first-quarter underperformance and the ongoing uncertainty in the consumer environment," Chief Executive Officer Tom Kingsbury said in a statement.

The retailer forecast fiscal 2024 net sales to fall between 2% and 4%, compared with its previous expectation of between a 1% drop and a 1% rise.

Kohl's now expects annual earnings per share in the range of $1.25 and $1.85, compared with its previous forecast of $2.10 to $2.70.

The company reported a per-share loss of 24 cents in the first quarter. Analysts were expecting a profit of 4 cents per share, according to LSEG data.