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Kohl's (KSS)
NYSE:KSS
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Kohl's
(NYSE:KSS)
58Neutral
Positive Factors
Earnings
Better than expected comps of -4.3% to -4% drove upside to EPS in prelim results.
Management Strategy
Management feels confident in their ability to replace Buchanan without impacting current key strategies.
Negative Factors
Financial Guidance
Kohl's Corporation provided very weak guidance for F25 with expected comparable sales down 4-6% and a significant dividend cut of 75%.
Leadership Transition
Leadership transition adds risk to turnaround.
Sales Performance
KSS is still struggling to drive sales in its core business and recent initiatives haven’t moved the dial.
Kohl's (KSS) vs. S&P 500 (SPY)
Market Cap
$834.93M
Dividend Yield23.02%
Average Volume (3M)12.74M
Price to Earnings (P/E)7.7
Beta (1Y)1.07
Revenue Growth-7.18%
EPS Growth-65.92%
CountryUS
Employees87,000
SectorConsumer Cyclical
Sector Strength57
IndustryDepartment Stores
Share Statistics
EPS (TTM)0.95
Shares Outstanding111,323,550
10 Day Avg. Volume9,665,964
30 Day Avg. Volume12,743,988
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap10.19
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit228.62
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$6.79Price Target Upside4.14% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering12
Kohl's Business Overview & Revenue Model
Company DescriptionKohl's Corporation (KSS) is a leading American department store retail chain, founded in 1962 and headquartered in Menomonee Falls, Wisconsin. The company operates over 1,100 stores across the United States, offering a wide range of products, including apparel, footwear, accessories, beauty products, and home goods. Kohl's targets middle-income families and provides value-oriented pricing, with a focus on national brands, exclusive merchandise, and private label products.
How the Company Makes MoneyKohl's makes money primarily through the sale of merchandise in its retail stores and through its online platform. The company's key revenue streams include apparel and accessories, which account for a significant portion of its sales. Kohl's also generates revenue from home products and seasonal merchandise. The company utilizes a combination of national brands and private labels to cater to a broad customer base. Additionally, Kohl's has partnerships with well-known brands and designers to offer exclusive products, enhancing its competitive edge and appeal. Its loyalty programs and Kohl's Cash incentives drive repeat purchases and customer retention, supporting consistent revenue generation.
Kohl's Key Performance Indicators (KPIs)
Any
Store Count
Indicates the total number of retail locations, reflecting the company's physical market presence and expansion strategy.
Indicates the total number of retail locations, reflecting the company's physical market presence and expansion strategy.
Data provided by:
Main Street Data
Main Street DataKohl's Financial Statement Overview
Summary
Kohl's faces challenges with declining revenues, low margins, and high leverage. Despite stable cash flows and some profitability, strategic improvements are needed for revenue growth and cost management.Income Statement
Kohl's income statement reveals challenges with declining revenues over the years, with a notable drop from $19.97 billion in 2020 to $16.22 billion in 2025. The gross profit margin is low at approximately 0.23% in 2025, indicating pressure on sales and cost management. Although there was a positive net income in 2025, the net profit margin remains modest at 0.67%. The EBIT margin is 2.67%, and the EBITDA margin is 7.25%, showing some profitability but lower than industry norms. Revenue growth was negative year-over-year, highlighting the need for strategic improvements to reverse this trend.55
Neutral
Balance Sheet
The balance sheet shows a mixed picture with a high debt-to-equity ratio of 0.76, suggesting significant leverage. However, the equity ratio of 28.05% in 2025 indicates a reasonable level of equity financing. Return on equity improved slightly to 2.87% in 2025, but this is still low, reflecting moderate profitability on shareholder investments. Liquidity seems manageable, but the high debt levels pose a risk if cash flows do not improve.60
Neutral
Cash Flow
The cash flow statement reflects a stable operating cash flow with $648 million in 2025, but free cash flow growth is inconsistent due to fluctuations in capital expenditures. The operating cash flow to net income ratio is strong at 5.95, indicating efficient cash generation relative to net income. The free cash flow to net income ratio is 5.95, also highlighting strong cash flow generation. However, the negative free cash flow growth in prior years underscores the need for careful capital spending management.70
Positive
| Breakdown | ||||
| Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 16.22B | 17.48B | 18.10B | 19.43B | 15.96B | Gross Profit |
| 37.20M | 6.23B | 6.64B | 8.00B | 5.59B | EBIT |
| 433.00M | 717.00M | 246.00M | 1.68B | -300.00M | EBITDA |
| 1.18B | 1.47B | 1.05B | 2.32B | 612.00M | Net Income Common Stockholders |
| 109.00M | 317.00M | -19.00M | 938.00M | -163.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 134.00M | 183.00M | 153.00M | 1.59B | 2.27B | Total Assets |
| 13.56B | 14.01B | 14.35B | 15.05B | 15.34B | Total Debt |
| 2.89B | 7.38B | 7.57B | 6.79B | 6.74B | Net Debt |
| 2.76B | 7.19B | 7.41B | 5.20B | 4.47B | Total Liabilities |
| 9.76B | 10.12B | 10.58B | 10.39B | 10.14B | Stockholders Equity |
| 3.80B | 3.89B | 3.76B | 4.66B | 5.20B |
| Cash Flow | Free Cash Flow | |||
| 648.00M | 591.00M | -544.00M | 1.67B | 1.00B | Operating Cash Flow |
| 648.00M | 1.17B | 282.00M | 2.27B | 1.34B | Investing Cash Flow |
| -467.00M | -562.00M | -783.00M | -570.00M | -137.00M | Financing Cash Flow |
| -230.00M | -576.00M | -933.00M | -2.38B | 347.00M |
Kohl's Technical Analysis
Negative
6.52
Price Trends
8.33
Negative
10.72
Negative
14.34
Negative
Market Momentum
-0.36
Negative
41.31
Neutral
51.51
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KSS, the sentiment is Negative. The current price of 6.52 is below the 20-day moving average (MA) of 6.81, below the 50-day MA of 8.33, and below the 200-day MA of 14.34, indicating a bearish trend. The MACD of -0.36 indicates Negative momentum. The RSI at 41.31 is Neutral, neither overbought nor oversold. The STOCH value of 51.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KSS.
Kohl's Risk Analysis
Kohl's disclosed 20 risk factors in its most recent earnings report. Kohl's reported the most risks in the “Ability to Sell” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Kohl's Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $5.43B | 9.60 | 33.98% | 0.28% | -4.13% | -17.60% | |
66 Neutral | $3.20B | 5.73 | 13.40% | 5.94% | -3.60% | 442.87% | |
61 Neutral | $4.05B | 13.86 | 29.58% | 3.15% | 2.20% | 120.00% | |
61 Neutral | $925.68M | ― | -0.45% | 4.03% | -12.29% | -105.55% | |
61 Neutral | $6.58B | 11.77 | 3.05% | 3.99% | 2.61% | -21.52% | |
58 Neutral | $834.93M | 7.71 | 2.83% | 23.02% | -7.18% | -65.92% | |
56 Neutral | $1.11B | 95.28 | 0.62% | ― | -2.20% | ― |
* Consumer Cyclical Sector Average
Performance Comparison
KSS
Kohl's
6.52
-15.23
-70.02%
DDS
Dillard's
345.90
-53.23
-13.34%
FL
Foot Locker
11.70
-12.14
-50.92%
M
Macy's
11.50
-6.72
-36.88%
JWN
Nordstrom
24.21
4.88
25.25%
WGO
Winnebago Industries
32.28
-28.66
-47.03%
Kohl's Earnings Call Summary
Earnings Call Date:Mar 11, 2025
(Q4-2024)
| % Change Since: -45.07%|
Next Earnings Date:May 29, 2025
Earnings Call Sentiment Negative
While there are some positive aspects such as the strong performance of Sephora and improved gross margins, the overall sentiment is dominated by significant challenges, including declines in net sales, store closures, and underperformance in digital sales. The guidance for 2025 further reflects a cautious outlook with expected decreases in sales, indicating ongoing challenges in turning around performance.Q4-2024 Updates
Positive Updates
Sephora as a Strong Sales Driver
Sephora continued to be a strong sales driver with beauty sales increasing 13% in Q4, showing an acceleration from the third quarter. This segment has successfully attracted new customers and maintained strong performance.
Improved Gross Margin
Gross margin in Q4 increased by 49 basis points to 32.9%, attributed to optimizing promotional events and a lower digital penetration. For the full fiscal year 2024, gross margin increased by 50 basis points to 37.2%.
Commitment to Operational Excellence
Kohl's is committed to reducing costs and investing in future growth, with actions taken in Q4 resulting in lower spending in stores, marketing, and supply chain, showing a decrease in SG&A expenses by 4.5%.
Negative Updates
Decline in Net Sales
Net sales declined 9.4% in Q4 and 7.2% for the year. Comparable sales also decreased by 6.7% in Q4 and 6.5% for the year, with notable underperformance in the digital business.
Store Closures and Inventory Challenges
The company announced the closure of 27 underperforming stores and one e-commerce fulfillment center, resulting in a one-time charge of $76 million. Inventory was up 2% compared to last year, driven by investments to rebuild proprietary brand inventory.
Challenges in Digital Sales
Digital sales underperformed with a comparable sales decline of 13.4% in Q4 and 8.7% for the year. The digital business faced headwinds from an inventory suppression issue, although improvements were seen after correction.
Sales Guidance for 2025
Guidance for 2025 anticipates net sales to decrease by 5% to 7% and comparable sales to decrease by 4% to 6%. This reflects the time needed for strategic changes and uncertainty in the macro environment.
Company Guidance
During the fourth quarter earnings call, Kohl's Corporation outlined its guidance for 2025, emphasizing a strategic turnaround that will take time to implement. The company expects net sales to decline by 5% to 7% and comparable sales to decrease by 4% to 6%. Operating margins are projected to be between 2.2% and 2.6%, with earnings per share ranging from $0.10 to $0.60. Key focus areas include enhancing the product assortment, re-establishing value and quality, and improving the omnichannel experience. The company plans to optimize its promotional strategy, aiming for a gross margin expansion of 30 to 50 basis points. SG&A expenses are expected to decrease by 3.5% to 5%, with further cost rationalization efforts underway. Capital expenditures are projected to be between $400 million and $405 million, with a focus on completing the Sephora rollout and expanding omnichannel capabilities. Kohl's also announced a reduction in its quarterly dividend to $0.125 per share to prioritize cash balance rebuilding and debt reduction.Kohl's Corporate Events
Executive/Board ChangesFinancial Disclosures
Kohl’s CEO Terminated Amid Conflict Investigation
Negative
May 1, 2025
On April 30, 2025, Kohl’s Board of Directors terminated CEO J. Ashley Buchanan for cause, following an investigation that revealed undisclosed conflicts of interest in vendor transactions. Michael J. Bender has been appointed as Interim CEO, and the Board will search for a permanent replacement. Buchanan’s termination is unrelated to the company’s performance or financial reporting. Kohl’s also provided preliminary expectations for its first quarter 2025 financial results, anticipating a decline in comparable sales and operating income.
Spark’s Take on KSS Stock
According to Spark, TipRanks’ AI Analyst, KSS is a Neutral.
Kohl’s overall stock score reflects significant financial challenges with declining sales and profitability. Technical indicators suggest bearish trends, while the valuation remains appealing due to a low P/E ratio and high dividend yield despite a recent cut. The cautious outlook and strategic focus on turnaround highlight risks and opportunities for potential improvement.
To see Spark’s full report on KSS stock, click here.
DividendsBusiness Operations and StrategyFinancial Disclosures
Kohl’s Declares Quarterly Dividend Amid Sales Decline
Neutral
Mar 11, 2025
On March 11, 2025, Kohl’s Board of Directors declared a quarterly cash dividend of $0.125 per share, payable on April 2, 2025, to shareholders of record as of March 21, 2025. Kohl’s reported a decrease in net sales and comparable sales for both the fourth quarter and fiscal year 2024, with net sales down 9.4% and 7.2%, respectively. Despite these declines, the company increased its gross margin and reduced SG&A expenses. Kohl’s CEO, Ashley Buchanan, emphasized the company’s strategic focus on leveraging its strengths and addressing key opportunities to better serve customers in 2025.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.