In its ongoing support to slow the spread of COVID-19, Kohl’s is extending the duration of its temporary store closures until further notice. Due to the significant impact to the business, Kohl’s is taking additional actions to strengthen its financial flexibility.
Given that the company will be extending the duration of its store closures until further notice, Kohl’s will temporarily furlough store and store distribution center associates, as well as some corporate office associates whose work has been significantly reduced by the store closures. The company will continue to provide existing health benefits to furloughed associates at this time, and those impacted may benefit from the recently passed coronavirus stimulus legislation. Kohl’s CEO Michelle Gass will not take a salary.
As part of the COVID-19 response, the company is taking the following actions to preserve financial liquidity and financial flexibility: decreasing capital expenditures by approximately $500 million; managing inventory meaningfully lower to align with anticipated sales; significantly reducing expenses across the business including marketing, technology and operations while stores remain closed; temporarily suspending share repurchases and evaluating its dividend program; fully drawing down its $1 billion revolving credit facility.
Kohl’s continues to serve customers through Kohls.com and the Kohl’s app. In addition to ship to home, beginning on April 2, Kohl’s customers can now shop on Kohls.com and opt to pick up their items at most Kohl’s stores between the hours of 11:00 a.m. and 7:00 p.m. local time. Kohl’s will offer this new convenience for customers who prefer to pick up their online orders at their local Kohl’s store for free and within two hours of placing their orders.
“These are unprecedented times as our communities around the country come together to support the nationwide efforts in slowing the spread of COVID-19. At Kohl’s we are committed to doing our part as we extend the duration of our store closures to protect the health and safety of our customers and our associates,” said Michelle Gass, Kohl’s CEO. “As a company, we operate with great discipline to maintain a strong balance sheet and financial flexibility. Given these extraordinary circumstances, we are taking difficult and decisive actions to strengthen our financial liquidity and secure the financial position of the company for the long-term benefit of our associates, customers and shareholders.”