11:16 AM EDT, 05/30/2024 (MT Newswires) -- Shares of Kohl's (KSS) tumbled intraday Thursday after the retailer swung to a fiscal first-quarter loss on a drop in sales and lowered its full-year outlook.

The company reported a net loss of $0.24 for the three months ended May 4 compared with a profit of $0.13 the year earlier. Analysts surveyed by Capital IQ were modeling for a $0.07 per-share profit. Kohl's stock tumbled 27% in Thursday trade.

Revenue slid to $3.18 billion from $3.36 billion year over year and missed the analyst estimate that revenue would be virtually flat. Comparable sales fell 4.4%, with lower clearance sales representing a more than 600 basis-point drag, Chief Executive Tom Kingsbury said in a statement.

"Our first quarter results did not meet our expectations and are not reflective of the direction we are heading with our strategic initiatives," he said.

Regular price sales increased on a year-over-year basis amid early success in underpenetrated categories, the women's business, and ongoing strength at Sephora. The company's growth initiatives, including Sephora, home decor, gifting, impulse and its upcoming partnership with Babies "R" Us, are expected to "contribute more meaningfully going forward," according to Kingsbury.

Kohl's tempered full-year expectations. It is now guiding for sales to decline by 2% to 4% from fiscal 2023's sales of $16.59 billion and comparable sales to drop by 1% to 3%. In March, the company had forecast flat sales at the midpoint and comparable sales to be flat to up 2%.

It now sees EPS in the $1.25 to $1.85 range, down from $2.10 to $2.70 previously expected . The Capital IQ consensus is for sales of $16.71 billion and GAAP EPS of $2.41 in the ongoing year.

"We recognize we have more work to do in areas of our business," Kingsbury said. "We are approaching our financial outlook for the year more conservatively given the first quarter underperformance and the ongoing uncertainty in the consumer environment."

Price: 20.24, Change: -7.01, Percent Change: -25.72