Kohl’s(KSS)

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Kohl's Expects Long Turnaround As Shoppers Are ‘Pretty Constrained'
PYMNTS.com· 2025-03-11 17:17
Core Insights - Kohl's is anticipating a challenging 2025 as the new CEO initiates a long-term turnaround strategy, projecting a revenue decline of 5% to 7% for the year, with comparable sales down 6.5% for the quarter [1] - The CEO acknowledged that many of the company's issues were self-inflicted due to past decisions, emphasizing the need to reconnect with loyal customers [2] - The company has recognized that the exclusion of private brands and certain brands from coupons has led to customer confusion and frustration, which is now being addressed [3] Customer Behavior and Market Conditions - Customers are increasingly seeking value, particularly those with lower income levels, indicating a broader trend of consumers feeling financially constrained [4] - The notion of living paycheck-to-paycheck is not solely tied to financial hardship but also reflects how individuals manage their income [5] - The CEO expressed optimism about Kohl's recovery but noted that restoring growth will require time and a thorough review of the business strategy [5]
Kohl's Mixed Results: EPS vs Revenue
The Motley Fool· 2025-03-11 15:04
Core Insights - Kohl's exceeded earnings expectations with adjusted EPS of $0.95, surpassing the forecast of $0.72, while revenue reached $5.2 billion, slightly above the anticipated $5.193 billion [2][3] Financial Performance - Q4 2024 adjusted EPS was $0.95, down 43.1% from $1.67 in Q4 2023 [3] - Revenue for Q4 2024 was $5.2 billion, a 9.4% decline from $5.71 billion in Q4 2023 [3][6] - Gross margin improved to 32.9%, up 0.5 percentage points from 32.4% in the previous year [3][7] - Operating income fell to $126 million, a 57.9% decrease from $299 million in Q4 2023 [3][6] Business Strategy - Kohl's focuses on a balanced merchandise mix of national and private brands, aiming to attract diverse shopper demographics [4] - Strategic initiatives include exclusive brand partnerships, such as with Sephora, and enhancing e-commerce capabilities to maintain competitive advantage [5] Challenges and Market Conditions - The company faced a 9.4% year-over-year decline in net sales, attributed partly to the calendar effect of an additional week in the previous fiscal year [6] - Comparable sales decreased by 6.7%, indicating ongoing challenges in sales performance [6] - The competitive retail landscape, particularly from online retailers and off-price stores, poses significant challenges [9] Future Outlook - For fiscal year 2025, Kohl's anticipates a 5% to 7% decrease in net sales and a 4% to 6% decline in comparable sales [11] - Projected operating margin is between 2.2% to 2.6%, with diluted EPS expected to range from $0.10 to $0.60 [11] - Management plans to invest $400 million to $425 million in capital expenditures to enhance fulfillment capabilities and customer experiences [12]
Kohl's shares slump on disappointing outlook
Proactiveinvestors NA· 2025-03-11 14:17
Company Overview - Proactive is a financial news publisher that provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The company has a team of experienced and qualified news journalists who produce independent content [2] Market Focus - Proactive specializes in medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [3] - The news team delivers insights across various sectors including biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3] Technology Adoption - Proactive is recognized for its forward-looking approach and enthusiastic adoption of technology to enhance workflows [4] - The company utilizes automation and software tools, including generative AI, while ensuring that all content is edited and authored by humans [5]
Kohl’s(KSS) - 2025 Q4 - Earnings Call Transcript
2025-03-11 14:02
Financial Data and Key Metrics Changes - Net sales declined by 9.4% in Q4 and 7.2% for the year, with comparable sales decreasing by 6.7% in Q4 and 6.5% for the year [24][30] - Gross margin in Q4 was 32.9%, an increase of 49 basis points, while for the full fiscal year 2024, gross margin increased by 50 basis points to 37.2% [30][31] - Adjusted net income for Q4 was $106 million, with adjusted earnings per diluted share at $0.95, while for the year, adjusted net income was $167 million and adjusted earnings per diluted share was $1.50 [33] Business Line Data and Key Metrics Changes - Sephora continued to be a strong sales driver with comparable beauty sales increasing by 13%, an acceleration from Q3 [27] - The accessories business, excluding Sephora, had a flat comparable sales performance for the quarter, driven by strong performance in fashion and bridge jewelry [28] - Key growth categories, including impulse, gifting, home decor, and baby gear, showed collective outperformance, although legacy home business remained challenged [29] Market Data and Key Metrics Changes - Digital sales experienced a decline of 13.4% in Q4 and 8.7% for the year, primarily due to softness in the home category and online inventory suppression issues [26] - Store comparable sales declined by 3.1% in Q4 and were down 5.6% for the year, although store sales benefited from strong average transaction value [24][25] Company Strategy and Development Direction - The company aims to offer a curated, more balanced assortment that fulfills needs across all customers, reestablish itself as a leader in value and quality, and enhance the omnichannel platform for a frictionless shopping experience [11][12][18] - The focus will be on proprietary brands, which resonate with core loyal customers, and simplifying promotions to improve customer experience [14][17] - The company plans to rebuild cash balance, reduce reliance on revolver, and capitalize on opportunities to further reduce debt and overall leverage [39] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that the turnaround will take time, with expectations set for gradual improvement starting in 2025 [11][22] - The macro environment presents challenges, particularly for lower-income customers who are seeking value [60][61] - Management is optimistic about the company's potential, citing a strong foundation and loyal customer base [21][22] Other Important Information - The company announced the closure of 27 underperforming stores and one e-commerce fulfillment center, resulting in a one-time charge of $76 million [33] - Capital expenditures for 2024 were $466 million, with expectations for 2025 to be in the range of $400 million to $425 million [34][39] Q&A Session Summary Question: Assessment of merchandising strategy and confidence in returning to growth - Management sees significant opportunities in product offerings, value, and quality, with a loyal customer base that can be better served [42][44] Question: Implications for margins with quality elevation of private brands - The focus is on balancing proprietary and national brands while improving promotional strategies to enhance customer value perception [48][50] Question: Store base evaluation and merchandise assortment mix - The company has a productive store base, with few unprofitable locations, and is focused on reallocating space effectively to meet customer needs [54][56] Question: Consumer health level in guidance - The guidance reflects uncertainty in the macro environment and the time needed for necessary changes [100] Question: Initiatives prioritization and free cash flow modeling - Short-term tactical moves are prioritized, with expectations for gradual improvement in free cash flow as inventory management progresses [68][71]
Kohl's (KSS) Beats Q4 Earnings and Revenue Estimates
ZACKS· 2025-03-11 13:15
Summary of Key Points Core Viewpoint - Kohl's reported quarterly earnings of $0.95 per share, exceeding the Zacks Consensus Estimate of $0.72 per share, but down from $1.67 per share a year ago, indicating a significant earnings surprise of 31.94% [1] Financial Performance - The company achieved revenues of $5.4 billion for the quarter ended January 2025, surpassing the Zacks Consensus Estimate by 0.94%, but down from $5.96 billion year-over-year [2] - Over the last four quarters, Kohl's has surpassed consensus EPS estimates two times and topped revenue estimates only once [2] Stock Performance and Outlook - Kohl's shares have declined approximately 14.2% since the beginning of the year, compared to a 4.5% decline in the S&P 500 [3] - The company's earnings outlook is currently unfavorable, leading to a Zacks Rank of 5 (Strong Sell), suggesting expected underperformance in the near future [6] Future Earnings Expectations - The current consensus EPS estimate for the upcoming quarter is -$0.28 on revenues of $3.23 billion, and for the current fiscal year, it is $1.10 on revenues of $15.78 billion [7] - The outlook for the retail industry, particularly the Retail - Regional Department Stores sector, is in the bottom 10% of Zacks industries, which may negatively impact stock performance [8]
Kohl’s(KSS) - 2025 Q4 - Earnings Call Transcript
2025-03-11 13:00
Financial Data and Key Metrics Changes - Net sales declined by 9.4% in Q4 and 7.2% for the year, with comparable sales decreasing by 6.7% in Q4 and 6.5% for the year [24][30] - Gross margin in Q4 was 32.9%, an increase of 49 basis points, while for the full fiscal year 2024, gross margin increased by 50 basis points to 37.2% [30][31] - Adjusted net income for Q4 was $106 million, with adjusted earnings per diluted share at $0.95, while for the year, adjusted net income was $167 million and adjusted earnings per diluted share was $1.50 [33] Business Line Data and Key Metrics Changes - Sephora continued to be a strong sales driver with comparable beauty sales increasing by 13%, an acceleration from Q3 [27] - The accessories business, excluding Sephora, had flat comparable sales for the quarter, driven by strong performance in fashion and bridge jewelry [28] - The apparel business saw notable comparable sales improvement as proprietary brand inventory was rebuilt throughout the quarter [29] Market Data and Key Metrics Changes - Digital sales experienced a decline of 13.4% in Q4 and 8.7% for the year, primarily due to softness in the home category and online inventory suppression issues [26] - Store comparable sales declined by 3.1% in Q4 and were down 5.6% for the year, although store sales benefited from strong average transaction value [24][25] Company Strategy and Development Direction - The company aims to offer a curated, balanced assortment that fulfills needs across all customers, reestablish itself as a leader in value and quality, and enhance the omnichannel platform for a frictionless shopping experience [11][12][18] - The focus will be on proprietary brands that resonate with core loyal customers, while also introducing new products to drive productivity [15][16] - The company plans to simplify promotions and clarify value messaging to improve the shopping experience [17][18] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that the turnaround will take time, with actions in 2025 marking the initial phase of improvement [11][22] - The macro environment presents challenges, particularly for customers with lower income levels, who are seeking value [60][61] - Management is optimistic about the company's potential, citing a strong foundation and a dedicated associate base focused on customer service [21][44] Other Important Information - The company announced the closure of 27 underperforming stores and one e-commerce fulfillment center, resulting in a one-time charge of $76 million [33] - Capital expenditures for 2025 are expected to be in the range of $400 million to $425 million, focusing on Sephora rollout and omnichannel enhancements [39] Q&A Session Summary Question: Assessment of merchandising strategy and confidence in returning to growth - Management sees significant opportunity in product offerings, value, and quality, with a loyal customer base that can be better served [42][43] Question: Implications for margins with quality elevation of private brands - The focus will be on balancing proprietary and national brands, with an emphasis on improving inventory allocation and promotional strategies [48][49] Question: Store base evaluation and merchandise assortment mix - The majority of stores are profitable, and management is focused on reallocating space effectively to enhance customer experience [54][55] Question: Consumer health level in guidance - The guidance reflects uncertainty in the macro environment and the time needed for necessary changes [100] Question: Initiatives prioritization and free cash flow modeling - Short-term tactical moves are prioritized, with longer-term strategies still in development [68][71]
Kohl's shares plunge 15% as retailer gives rough outlook for the year ahead
CNBC· 2025-03-11 12:19
Core Insights - Kohl's reported better-than-expected earnings and revenue for the fourth quarter, but the stock plummeted due to significantly worse guidance for the upcoming year [1][2] Financial Performance - Fourth-quarter net sales were $5.18 billion, down from $5.71 billion in the same period of 2023 [5] - Full-year 2024 sales totaled $15.39 billion, a decrease from $16.59 billion in 2023 [5] - Quarterly comparable sales fell 6.7% year over year, slightly better than the expected 6.8% decrease [5] - Net income for the fourth quarter was $48 million, or 43 cents per share, compared to $186 million, or $1.67 per share, in the fourth quarter of 2023 [6] - Adjusted earnings per share were 95 cents, exceeding the expected 73 cents [7] Future Guidance - For 2025, Kohl's expects revenue to decline by 5% to 7%, compared to Wall Street's estimate of a 1.6% decrease [2] - The company projects comparable sales to fall by 4% to 6%, while analysts anticipated a 0.9% decrease [2] - Earnings per share guidance is set between 10 cents and 60 cents, missing the midpoint Wall Street estimate of $1.23 [2] Management Changes and Challenges - Kohl's appointed Ashley Buchanan as the new CEO, replacing Tom Kingsbury, who led the company for two years [3] - The company has cut nearly 10% of its corporate workforce and plans to close 27 underperforming stores by April [3] - The stock has fallen over 50% in the past year, reflecting broader concerns about consumer confidence and economic conditions [4]
Kohl’s(KSS) - 2025 Q4 - Annual Results
2025-03-11 11:00
Financial Performance - Fourth quarter net sales decreased 9.4% year-over-year to $5.2 billion, while fiscal year 2024 net sales decreased 7.2% to $15.4 billion[4] - Comparable sales decreased 6.7% for the fourth quarter and 6.5% for the fiscal year 2024[5] - Fourth quarter diluted earnings per share (EPS) was $0.43, with adjusted diluted EPS of $0.95; fiscal year 2024 diluted EPS was $0.98, with adjusted diluted EPS of $1.50[4] - Operating income for the fourth quarter was $126 million, a decrease from $299 million in the prior year, representing 2.3% of total revenue[5] - Net income for the fourth quarter was $48 million, compared to $186 million in the prior year, while fiscal year net income was $109 million, down from $317 million[5] Inventory and Cash Flow - Inventory increased by 2% year-over-year to $2.9 billion[5] - Net cash provided by operating activities decreased to $648 million from $1,168 million, reflecting a decline of 44.6% year-over-year[17] - Merchandise inventories saw a significant change, decreasing by $60 million compared to an increase of $315 million in the previous year[17] - Net cash used in investing activities was $467 million, down from $562 million, indicating a reduction of 16.9%[17] - Net cash used in financing activities decreased to $230 million from $576 million, a decline of 60%[17] - Cash and cash equivalents at the end of the period were $134 million, down from $183 million at the beginning of the period[17] Future Projections - The company expects net sales to decrease between 5% to 7% and comparable sales to decrease between 4% to 6% for fiscal year 2025[10] - Capital expenditures are projected to be in the range of $400 million to $425 million for fiscal year 2025[10] Dividends and Shareholder Returns - Kohl's Board of Directors declared a quarterly cash dividend of $0.125 per share, payable on April 2, 2025[10] - Dividends paid increased slightly to $222 million from $220 million, reflecting a marginal increase of 0.9%[17] Expenses and Borrowing - Depreciation and amortization expenses were $743 million, slightly down from $749 million in the previous year[17] - Share-based compensation decreased to $30 million from $42 million, a reduction of 28.6%[17] - The company reported a net borrowing of $198 million under the revolving credit facility, compared to only $7 million in the previous year[17]
Kohl's Stock Falls Before Earnings as Retailers Struggle
Schaeffers Investment Research· 2025-03-06 17:07
Core Viewpoint - Kohl's Corp is expected to report significant declines in quarterly profits and revenue due to ongoing consumer spending challenges [1] Financial Performance Expectations - Analysts anticipate Kohl's to announce quarterly profits of 72 cents per share on revenue of $5.35 billion, both reflecting substantial declines from the previous year [1] Historical Stock Performance - Kohl's stock has a history of poor post-earnings reactions, including a 17% drop after its November report, with five out of the last eight earnings reports resulting in next-day losses averaging an 8.7% swing [2] - The stock is currently down 0.8% to $11.27, marking a 19.6% decline year-to-date and a 58.4% loss over the last 12 months [3] Analyst Sentiment - Analysts remain largely bearish, with all 12 covering brokerages rating Kohl's as a "hold" or worse [4] - Short interest has increased by 8.4% to 46.96 million shares sold short, representing 43.3% of the stock's float [4] Options Market Activity - Options traders are leaning bullish, with a 50-day call/put volume ratio of 2.83, indicating some investors may be betting on an earnings-driven rebound despite recent struggles [5]
Board Approves Final Plans For 16 Cottages At Cedarhurst Of Frankfort
Frankfort, IL Patch· 2025-03-06 16:36
Core Points - The Frankfort Village Board approved a final development plan for phase 2 of Cedarhurst of Frankfort, which includes the construction of 16 independent living buildings [1] - The plan commission unanimously recommended the approval of the final development plan, with conditions related to the landscape and photometric plans being addressed [2]