Kohl's Corp (NYSE:KSS) stock is down 19.9% to trade at $14.71 at last glance, after the retailer's third-quarter earnings and revenue missed estimates. The company also revealed Michaels CEO Ashley Buchanan will replace its current CEO Tom Kingsbury, effective Jan. 15. In response to the results, J.P. Morgan Securities cut its price target to $13 from $17.KSS gapped to a fresh four-year low of $14.53 earlier, after running into familiar overhead pressure at the $19 level. Shares have also struggled with res ...

Core Viewpoint - Kohl's shares dropped over 20% following a significant decline in sales and the abrupt resignation of its CEO just days before Black Friday, raising concerns about the company's future performance [1][3]. Sales Performance - Kohl's reported a same-store sales decline of 9.3%, marking the eleventh consecutive quarterly decline [1][2]. - The company has lowered its annual sales forecast for the third consecutive quarter, now expecting a full-year net sales decline between 7% and 8%, compared to a previous forecast of a 4% to 6% decline [2]. Leadership Changes - CEO Tom Kingsbury announced his resignation after less than two years in the role, which is seen as a negative signal for investor confidence [3][4]. - Ashley Buchanan, former CEO of Michaels and a Walmart executive, has been appointed to take over the role in January [4]. Customer Trends - Customer visits to Kohl's decreased by an average of 6.2% in the third quarter, worsening from a 3% decline in the previous quarter [5]. - The shift in consumer behavior is evident as cash-strapped customers are increasingly turning to discount retailers like Walmart, impacting Kohl's performance [7][8]. Market Context - Kohl's shares have fallen 47.9% year-to-date, while Macy's shares have dropped 18.7% in the same period [9]. - The competitive landscape is challenging, with consumers favoring discount chains amid inflation and price hikes, which poses risks for traditional department stores like Kohl's and Macy's [8][9].

Summary of Key Points Core Viewpoint - Kohl's reported quarterly earnings of $0.20 per share, missing the Zacks Consensus Estimate of $0.27 per share, and showing a significant decline from $0.53 per share a year ago, indicating a -25.93% earnings surprise [1][2] Financial Performance - The company posted revenues of $3.71 billion for the quarter ended October 2024, which was 3.32% below the Zacks Consensus Estimate and down from $4.05 billion year-over-year [2] - Over the last four quarters, Kohl's has surpassed consensus EPS estimates only two times, and it has not beaten consensus revenue estimates during this period [2] Stock Performance - Kohl's shares have decreased approximately 36.1% since the beginning of the year, contrasting with the S&P 500's gain of 25.5% [4] - The current Zacks Rank for Kohl's is 3 (Hold), suggesting that the shares are expected to perform in line with the market in the near future [7] Earnings Outlook - The consensus EPS estimate for the upcoming quarter is $1.13 on revenues of $5.57 billion, and for the current fiscal year, it is $1.77 on revenues of $16.52 billion [8] - The trend of estimate revisions for Kohl's is mixed, and future changes in estimates will be closely monitored following the recent earnings report [7][8] Industry Context - The Retail - Regional Department Stores industry, to which Kohl's belongs, is currently ranked in the top 6% of over 250 Zacks industries, indicating a favorable outlook compared to lower-ranked industries [9]

Core Points - Kohl's shares are experiencing a decline of 3.5% in premarket trading following the announcement of CEO Tom Kingsbury's resignation after less than two years in charge [2][5] - Kingsbury will step down on January 15 and will be succeeded by Ashley Buchanan, who previously served as CEO of The Michaels Companies [2][3] - Under Kingsbury's leadership, Kohl's has faced challenges with falling sales, resulting in a 36% drop in shares this year [5] Leadership Transition - Tom Kingsbury, who became interim CEO at the end of 2022, will remain in an advisory role until his retirement in May next year [3] - Ashley Buchanan is noted for improving profitability and cash flow at Michaels while enhancing operational efficiencies and e-commerce [5] - The board chair, Michael Bender, highlighted that the company is undergoing a transformation to improve its product portfolio and store experience [4]

Earnings Report - Kohl's Corporation is set to release its third-quarter earnings results on November 26, with analysts expecting earnings of 27 cents per share, a decrease from 54 cents per share a year ago [1] - The company is projected to report quarterly revenue of $3.71 billion, down from $3.84 billion a year earlier [1] Leadership Change - CEO Tom Kingsbury will step down from his position effective January 15, 2025 [2] Stock Performance - Kohl's shares increased by 7.7%, closing at $18.34 on Monday [3] Analyst Ratings - Citigroup analyst Paul Lejuez maintained a Neutral rating and reduced the price target from $19 to $18 [4] - JP Morgan analyst Matthew Boss downgraded the stock from Neutral to Underweight with a price target of $19 [4] - Evercore ISI Group analyst Michael Binetii maintained an In-Line rating and cut the price target from $22 to $20 [4] - Baird analyst Mark Altschwager maintained an Outperform rating and lowered the price target from $27 to $25 [4] - Telsey Advisory Group analyst Dana Telsey maintained a Market Perform rating with a price target of $23 [4]

Leadership Transition - Kohl's has appointed Ashley Buchanan, the current CEO of Michaels Companies, to succeed Tom Kingsbury as CEO effective January 15 [1] - Kingsbury will remain in an executive advisory role and on the board until his retirement in May [1][3] Background of New CEO - Ashley Buchanan has been the CEO of Michaels since 2020 and has over 13 years of experience at Walmart and Sam's Club in various senior executive roles [1][2] - Under Buchanan's leadership at Michaels, profitability and cash flow improved, and operational efficiencies were enhanced [2] Strategic Direction - Kohl's is undergoing a transformation to elevate its product portfolio, enhance the store experience, and improve long-term financial health and profitability [4] - The company is reshaping its identity to emphasize value-driven appeal for families, with a marketing message focused on lower price points [5][4] Transition Plan - Buchanan will step down from his role at Michaels on January 15 and will assist in ensuring a smooth transition over the next two months [6]

Leadership Changes - Kohl's is appointing a new CEO, Ashley Buchanan, effective January 15, succeeding Tom Kingsbury, who has been in the role since early 2023 after an interim period starting in late 2022 [1][4] - Buchanan previously led Michaels since 2020 and has extensive experience at Walmart, including roles in merchandising and operations [2][4] Financial Performance - Kohl's shares declined approximately 3% in extended trading following the CEO announcement [2] - During Kingsbury's interim period from December 2, 2022, to February 2, 2023, shares fell 17%, and have since dropped an additional 45% [5] - Comparable store sales at Kohl's have decreased for the past 10 consecutive quarters, indicating ongoing challenges in returning to sales growth [5] Board and Advisory Role - Kingsbury will remain with Kohl's in an advisory capacity to Buchanan and will stay on the board until his retirement in May [3] - Kohl's plans to reduce its board size by one seat and does not intend to replace Kingsbury [3] Market Context - Buchanan's leadership comes at a critical time as department stores face challenges in attracting shoppers amid increasing competition [4] - Kohl's off-mall format has provided some insulation compared to other department stores, but the company has experienced difficulties in recent years [4]

Core Viewpoint - Investors in Kohl's Corporation (KSS) should closely monitor the stock due to significant movements in the options market, particularly the high implied volatility of the Jan 17, 2025 $5.00 Call option [1] Group 1: Implied Volatility - Implied volatility indicates the market's expectations for future stock movement, with high levels suggesting anticipation of a significant price change or an upcoming event that could trigger a rally or sell-off [2] - The current high implied volatility for Kohl's options may signal a developing trading opportunity, as options traders often seek to sell premium on such options to capture decay [4] Group 2: Analyst Opinions - Kohl's holds a Zacks Rank 3 (Hold) within the Retail-Regional Department Stores industry, which ranks in the top 6% of the Zacks Industry Rank [3] - Over the past 60 days, one analyst has raised their earnings estimate for the current quarter, while two have lowered theirs, resulting in a decrease of the Zacks Consensus Estimate from 28 cents per share to 27 cents [3]

Kohl's Corporation (KSS) is likely to register declines in the top and bottom lines when it reports third-quarter fiscal 2024 earnings on Nov. 26. The Zacks Consensus Estimate for revenues is pegged at $3.8 billion, which indicates a 5.3% decrease from the year-ago quarter's actual. The consensus mark for quarterly earnings moved down by a penny in the last seven days to 27 cents per share, indicating a decline of 49.1% from the year-ago quarter’s reported figure. KSS has a trailing four-quarter negative ea ...

Core Viewpoint - Analysts forecast a significant decline in Kohl's quarterly earnings and revenues, indicating potential challenges for the company in the upcoming earnings release [1][2]. Earnings Estimates - The expected earnings per share (EPS) for Kohl's is $0.27, reflecting a year-over-year decline of 49.1% [1]. - The consensus EPS estimate has been revised downward by 4.7% in the past 30 days [2]. Revenue Projections - Total revenues are anticipated to be $3.84 billion, a decrease of 5.3% compared to the same quarter last year [1]. - Analysts predict 'Other revenue' will reach $201.36 million, down 4.6% year-over-year [5]. - The consensus estimate for 'Net Sales' is $3.64 billion, indicating a decline of 5.4% from the prior-year quarter [5]. Segment Revenue Estimates - Revenue Recognition for Accessories is estimated at $624.01 million, showing a slight increase of 0.7% year-over-year [5]. - Revenue Recognition for Children's is projected at $515.69 million, down 8.2% year-over-year [6]. - Revenue Recognition for Footwear is expected to be $335.43 million, reflecting a decrease of 8.9% [6]. - Revenue Recognition for Men's is forecasted at $737.52 million, indicating a decline of 6.9% [6]. - Revenue Recognition for Women's is estimated at $970.99 million, down 3.6% [7]. - Revenue Recognition for Home is projected at $473.01 million, a decrease of 4.3% [7]. Store Metrics - The total number of stores is expected to reach 1,178, an increase from 1,100 reported in the same quarter last year [7]. Stock Performance - Kohl's shares have decreased by 15.9% over the past month, contrasting with a 1% increase in the Zacks S&P 500 composite [8]. - The company holds a Zacks Rank 3 (Hold), suggesting it is expected to perform in line with the overall market in the near future [8].