The company said on Tuesday that retail sales open at least a year rose 0.4% during the last quarter. Cole's profit fell 24% in the quarter from a year ago, and the retailer downgraded its outlook on holiday shopping. This was the second time Cole lowered his forecast this year.
Chief Executive Officer Michelle Gas tried to give the best turnaround. "We are entering the holiday season with intensity," she said in a prepared statement.
It has gone a long way to belittle investors. Quantity (KSS) shares fell on Tuesday. Shares fell as much as 17% during early trading. Macy's (M.) and Nordstrom (JWN) also dropped. These two chains are reporting earnings later this week.
The results signal that Cole's rearrangement strategies are diminishing.
Despite Cole's attempts to rediscover adapting to the sweeping changes in the retail industry, the company still cannot avoid strong pressure on department stores. Amazon (AMZN), online brands, big box retailers and discount chains like TJMaxx. Since 2011, Cole has lost 17% of its market share, according to a UBS estimate earlier this year.
And TJX (TJX), which includes TJMaxx and Marshalls, said Tuesday that retail sales opened at least a year higher by 4% last quarter. The company increased its lead for the rest of the year.
Gas, Cole's chief executive, has taken a proactive approach to discovering more than 1,150 retail stores for the era of online shopping. Many analysts believe Cole is in a better position than Macy, JKPenny and other trademarks, as most Cole's stores are far from malls.
Cole is partnering with Amazon to offer free in-store customer benefits. Gas earlier this year announced that Amazon's takeover of all its stores was the company's "single biggest initiative" of the year.
It also reduced the size of some stores and leased additional space for companies such as Aldi and Fitness on the planet (PLNT). It has also tested concepts such as "bar clothing" to extract Millennials. Clothing bars allow women to shop for "looking" at work and social occasions – in one place.
But in order to survive, Cole may have to go bigger.