Latest news with #Kohl'sCorp
Yahoo
21 hours ago
- Business
- Yahoo
Where Will Kohl's Stock Be in 1 Year?
Kohl's first-quarter earnings showed continued sales weakness and a net loss. The struggling retailer is attempting to improve its cash position and stabilize growth. The stock will likely remain volatile until tangible signs of improvement emerge. 10 stocks we like better than Kohl's › Kohl's (NYSE: KSS) is navigating what may be the most difficult period in its 63-year history. Shares of the department store giant have plummeted 42% year to date, amid falling sales -- testing the retailer's relevance. Despite these challenges, the company remains profitable and is pushing forward with a turnaround strategy that may spark a stock price rebound. Does the recent weakness make Kohl's a clearance-rack bargain to buy now, or is keeping it in layaway the more prudent move? Let's explore where the stock might be in a year. Kohl's is recognized for its unique blend of private-label and major fashion brands at affordable prices. Even as the model commands a loyal customer following, the company has been caught in a shifting consumer spending environment, with shoppers facing stretched discretionary spending budgets. The retailer now appears to be struggling to maintain its market share against intense competition from other stores and e-commerce players. This year, the latest headwind is the new tariffs on imported goods implemented by the Trump administration, which have forced Kohl's to adjust its inventory management and diversify its supply chain to mitigate the impact. The company has also been marred by corporate dysfunction, firing its former CEO Ashley Buchanan in early May following an internal investigation. In the first quarter (ended May 3), revenue fell by 4.1% year over year, reflecting a 3.9% decline in comparable sales, with its digital business underperforming. If there is a silver lining to the results, efforts to control costs and streamline operations allowed the net loss of $0.13 per share to narrow compared to a $0.24 loss in the prior-year quarter. For the full year, Kohl's expects further sales weakness, targeting a decline in annual net sales between 5% and 7%. While that estimate at the midpoint, if confirmed, would mark a modest improvement compared to the 7.2% drop in 2024, the projected earnings per share (EPS) for 2025 of between $0.10 and $0.60 is below the $0.98 result last year. On this point, it's notable that even with ongoing difficulties, Kohl's is expected to be profitable this year. Ultimately, the new interim CEO, Michael Bender, has a lot of work ahead to repair the company's credibility and fix the many broken parts of this once industry-leading retailer. Metric 2024 2025 Comparable sales growth (YOY) (6.5%) (4%) to (6%) Net sales growth (YOY) (7.2%) (5%) to (7%) Operating margin 2.7% 2.2% to 2.6% EPS $0.98 $0.10 to $0.60 Source: Kohl's Corp. YOY = year over year. Kohl's is implementing a comprehensive plan to stabilize its finances and improve its foundation to kick-start growth over the long run. To achieve this, the company is focused on reducing debt and rebuilding its cash position. A key step was the dividend cut announced earlier this year, reducing the quarterly payment to $0.125 per share from the previous $0.50 per-share rate. The new dividend still offers investors a compelling 6.1% yield, and it will also save the company approximately $164 million in cash annually, which will help it address its current $2.1 billion in balance sheet debt. Additionally, Kohl's is revamping its shopping experience to attract customers back to its stores and website. A significant store refresh initiative covering 613 locations this year should enhance the omnichannel experience, intended to make shopping more engaging and seamless. The company is also adjusting its product mix to better meet customer needs, with a focus on high-value categories like jewelry, which has been a rare bright spot with positive growth. Furthermore, Kohl's is expanding its partnership with beauty products specialist Sephora, completing a rollout of shop-in-shops across its 1,100 locations and showing promising results. By refining its marketing messaging and highlighting its core strengths, Kohl's aims to reestablish its brand appeal and get back on track for sustainably profitable growth. In my view, it's too early to buy Kohl's stock with conviction, as its numerous uncertainties add to the risk of further downside in a scenario where growth continues to disappoint. Beyond Kohl's temptingly high-yielding dividend, I believe the prudent move is for investors to avoid it for now, as I predict the stock will remain volatile and could be trading at a lower price this time next year. Before you buy stock in Kohl's, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Kohl's wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $668,538!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $869,841!* Now, it's worth noting Stock Advisor's total average return is 789% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Dan Victor has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Where Will Kohl's Stock Be in 1 Year? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
29-05-2025
- Business
- Yahoo
Kohl's Shares Up on Better-Than-Expected EPS, Maintains FY Guidance
By Karen Roman Kohl's Corp. (NYSE: KSS) shares rose 4% in early trade Thursday after the company said its first quarter loss narrowed to $15 million, or 13 cents a share, surpassing analysts' expectations of 22 cents a share. Kohl's earnings were above its previous expectations issued in early May, when it also reported the appointment of Michael Bender as interim CEO. The company confirmed its full-year outlook with sales expected to decline 5% to 7% and EPS projected between $0.10 and $0.60, it said in a statement. 'Our first quarter performance was ahead of our expectations and the actions we are taking are starting to make progress with early signs of a positive impact,' said Bender. 'Our team is focused and motivated to deliver great products, great value, and a great shopping experience to our customers.' Contact: editor@ Sign in to access your portfolio
San Francisco Chronicle
29-05-2025
- Business
- San Francisco Chronicle
Kohl's: Fiscal Q1 Earnings Snapshot
MENOMONEE FALLS, Wis. (AP) — MENOMONEE FALLS, Wis. (AP) — Kohl's Corp. (KSS) on Thursday reported a loss of $15 million in its fiscal first quarter. The Menomonee Falls, Wisconsin-based company said it had a loss of 13 cents per share. The results surpassed Wall Street expectations. The average estimate of five analysts surveyed by Zacks Investment Research was for a loss of 22 cents per share. The department store operator posted revenue of $3.23 billion in the period, also beating Street forecasts. Three analysts surveyed by Zacks expected $3.2 billion. _____
Yahoo
01-05-2025
- Business
- Yahoo
Kohl's Fires CEO for Violating Policy
Kohl's Corp. fired CEO Ashley Buchanan after the board found he directed the company to do millions of dollars of business with someone he had a personal relationship with on "highly unusual terms." Shelly Banjo has more on "Bloomberg Open Interest." Sign in to access your portfolio
Yahoo
12-03-2025
- Business
- Yahoo
Kohl's Corp (KSS) Q4 2024 Earnings Call Highlights: Navigating Sales Declines and Strategic ...
Net Sales Decline: 9.4% decrease in Q4; 7.2% decrease for the year. Comparable Sales: Decreased 6.7% in Q4; 6.5% for the year. Store Comparable Sales: Declined 3.1% in Q4; down 5.6% for the year. Digital Sales: Declined 13.4% in Q4; down 8.7% for the year. Gross Margin: 32.9% in Q4, an increase of 49 basis points; 37.2% for the year, an increase of 50 basis points. SG&A Expenses: Decreased 4.5% in Q4; 3.7% for the year. Adjusted Net Income: $106 million in Q4; $167 million for the year. Adjusted Earnings Per Share: $0.95 in Q4; $1 for the year. Store Closures: 27 underperforming stores and 1 e-commerce fulfillment center closed. Operating Cash Flow: $596 million in Q4; $648 million for the year. Capital Expenditures: $99 million in Q4; $466 million for the year. Inventory: Up 2% compared to last year. 2025 Guidance - Net Sales: Expected decrease of 5% to 7% versus 2024. 2025 Guidance - Comparable Sales: Expected decrease of 4% to 6%. 2025 Guidance - Operating Margins: Expected to be in the range of 2.2% to 2.6%. 2025 Guidance - Earnings Per Share: Expected to be in the range of $0.10 to $0.60 per diluted share. 2025 Capital Expenditures: Expected to be in the range of $400 million to $425 million. Dividend Reduction: Quarterly cash dividend reduced to $0.12.50 per share. Warning! GuruFocus has detected 8 Warning Signs with KSS. Release Date: March 11, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Kohl's Corp (NYSE:KSS) has a solid foundation with over 1,100 stores serving more than 60 million customers, including 30 million loyalty members. The company is focusing on offering a curated, balanced assortment to fulfill customer needs, which includes refocusing on categories like fine jewelry and proprietary brands. Sephora continues to be a strong sales driver, with beauty sales increasing by 13% in the fourth quarter. Kohl's Corp (NYSE:KSS) is working on enhancing its omnichannel platform to deliver a frictionless shopping experience, aiming for consistency across all channels. The company has a strategic plan for supply chain diversity, which has been beneficial in maintaining product assurance and agility. Net sales declined by 9.4% in Q4 and 7.2% for the year, with comparable sales decreasing by 6.7% in Q4. The digital business underperformed, with a 13.4% decline in comparable sales during Q4, partly due to an online inventory suppression issue. Kohl's Corp (NYSE:KSS) experienced a decrease in credit revenue due to lower revolving credit balances and lower late fees. The company announced the closure of 27 underperforming stores and one e-commerce fulfillment center, resulting in a one-time charge of $76 million. The guidance for 2025 indicates a continued decline in net sales, with expectations of a 5% to 7% decrease compared to 2024. Q: Could you talk us through your assessment of what has been working, what hasn't been working with the merchandising strategy, and what gives you confidence that Kohl's can return to growth? A: Ashley Buchanan, CEO: I saw opportunities in product offerings, value, quality, store operations, and omnichannel experiences. Many issues were self-inflicted, but we have a loyal customer base and dedicated associates. Short-term tactical changes are underway, focusing on proprietary brands and omnichannel improvements. Long-term strategies are still being developed. Q: What are the implications from a margin perspective as you aim to elevate the quality of private brands while broadening brand inclusion with promotional offers? A: Ashley Buchanan, CEO: We are focusing on proprietary brands, which resonate with customers and offer better margins. We aim to balance national and proprietary brands, optimizing promotions and markdowns. The mix of excluded brands from coupons has been too high, impacting perceived value. Adjustments will take time as we have already bought inventory through Q3. Q: How do you think of the store base, and what are you looking for in terms of size and number? A: Ashley Buchanan, CEO: Most stores are profitable, especially our main 80,000 square foot prototype. We evaluate our store base annually and see opportunities in optimizing space allocation and adjacencies. The smaller format stores are still a work in progress, but our larger stores remain highly productive. Q: What steps are you taking to regain traction with lost customers, and is there a cost associated with that? A: Ashley Buchanan, CEO: We need to make changes first, such as enhancing proprietary brands and reintroducing categories. We have a large customer database to reach out to, and while there may not be significant incremental costs, it will take time to regain customer trust. We must ensure changes are in place before communicating them to customers. Q: Could you speak to the process of reversing brand exclusions on the coupon program? A: Ashley Buchanan, CEO: We are evaluating every brand. Some large national brands will remain excluded, but many brands were excluded unilaterally over the years. We are looking to reverse these exclusions, as they have added up and impacted customer perception. This process doesn't require extensive brand conversations, as many brands did not request exclusion. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
