NEW YORK—Kohl’s posted a surprise profit for the fiscal first quarter, helped by the department store chain’s moves to cut inventory in the wake of weak sales.
The company, based in Menomonee Falls, Wisconsin, also affirmed its annual financial guidance, pushing up shares 11 percent higher in premarket trading on Wednesday.
Kohl’s said that it it cut inventory by 6 percent while it continued to see sales momentum with its Sephora beauty shops and noted that its stores were more productive.
The moves come after the department store chain said in early March that it planned to cut inventory this year by 5 percent, be more surgical with discounts and change how it showcases its merchandise to get shoppers to buy after the department store chain reported a big loss and a sales slump in the fourth quarter….