Core Insights - Kohl's reported a significant decline in comparable sales, dropping 9.3% in the third quarter, which CEO Tom Kingsbury described as "frankly disappointing" despite efforts to enhance products and in-store experiences [2][5] - The company experienced a net income decrease to $22 million for the third quarter, down from $59 million in the same period last year [4] - Full-year comparable sales are now expected to be 6% to 7% lower compared to 2023, leading to a 17% drop in shares on a recent trading day, with a total decline of 45% for the year, valuing the company at less than $1.6 billion [5] Sales Performance - Sales in apparel and footwear remained weak, although categories like Sephora, home decor, gifting, and impulse items showed strong performance [3][8] - The partnership with Sephora, which has about 1,050 concessions in Kohl's locations, resulted in a 15% increase in total beauty sales for the quarter, but also led to missed opportunities in other categories like fine jewelry [6][8] Strategic Challenges - The decision to focus on Sephora led to a 20% drop in inventory for private brands, which negatively impacted Kohl's ability to serve customers [6] - The fine jewelry business was largely displaced by the introduction of Sephora Shops, creating a persistent headwind for sales performance [7][9]

Kohl’s will sharpen its focus on value by increasing its inventory of private brands and delivering more targeted offers as it works to reverse its declining sales.The retailer said this Tuesday (Nov. 26) while reporting that during the third quarter, it saw its net sales decrease 8% year over year, while its comparable sales were down 9.3%, according to a Tuesday earnings release.“We are not satisfied with our performance and are taking aggressive action to reverse the sales declines,” Kohl’s CEO Tom Kings ...

Shares of Kohl's Corporation (NYSE: KSS ) have been a poor performer this year, losing 37% of their value, as the department store has struggled mightily to turn around operations. That pain intensified Tuesday as shares plunged 20% amid dourOver fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a question for an article, just let me ...

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Financial Data and Key Metrics Changes - Net sales decreased by 8.8% in Q3 and are down 6.1% year-to-date [48] - Comparable sales declined by 9.3% in Q3 and 6.4% year-to-date [48] - Gross margin for Q3 was 39.1%, up 20 basis points year-over-year, driven by inventory management and lower freight expenses [50] - SG&A expenses declined by 5.1% to $1.3 billion in Q3 [51] - Net income for Q3 was $22 million, with earnings per diluted share at $0.20 [52] Business Line Data and Key Metrics Changes - Comparable sales in apparel and footwear businesses declined significantly, while Sephora, home decor, gifting, and impulse categories showed strong performance [12][13] - Private brand inventory decreased by more than 20% compared to the prior year, impacting sales in key value items [22] - Sales from home decor increased by more than 50% year-over-year, and impulse sales grew by over 40% [36][37] Market Data and Key Metrics Changes - Transactions declined approximately 3% in Q3, with softness noted particularly during the back-to-school season [17] - Digital sales outperformed store sales but were still down compared to last year [49] - The company added nearly 4 million new Kohl's Rewards members in 2024, which is expected to drive customer engagement [19] Company Strategy and Development Direction - The company is focused on balancing inventory levels between private brands and market brands to improve sales performance [24] - Plans to reintroduce fine jewelry in 200 stores and expand petites offerings to regain customer loyalty [28][29] - The strategy includes leveraging targeted marketing and social media to drive traffic and customer acquisition [18][66] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that Q3 results were disappointing and attributed sales weakness to traffic decline and inventory management issues [12][16] - The company expects a highly competitive holiday season and has adjusted its fiscal year 2024 guidance to reflect ongoing sales pressure [15][58] - November sales showed marked improvement compared to Q3, indicating a positive trend heading into the holiday season [43] Other Important Information - Tom Kingsbury will step down as CEO effective January 15, 2025, with Ashley Buchanan appointed as his successor [7][9] - The company managed expenses down by 5% in Q3 and remains focused on expense management [44] - Capital expenditures for 2024 are planned at approximately $500 million, including investments in new store openings and expansions [54] Q&A Session Summary Question: What actions will drive traffic in Q4 and 2025? - Management highlighted showcasing great values, targeted offers, and increased social and digital marketing as key actions to drive traffic [64][66] Question: Update on credit card trends? - Credit performance is in line with expectations, with payment rates dropping as anticipated, and benefits from co-brands expected in Q4 and 2025 [67][68] Question: Why is now the right time for leadership transition? - The new CEO is aligned with the current strategy, and the transition is planned to minimize disruption [71][72] Question: How to recapture lost customers? - The focus will be on marketing investments, targeted offers, and reintroducing private brands and jewelry counters to attract previous customers [103][106] Question: What is the strategy to offset potential deceleration in Sephora sales? - The company plans to enhance cross-selling opportunities and focus on gifting during the holiday season [110][111]

Shares of Kohl’s Corporation KSS are trading much lower on Tuesday. There is a good chance a new downtrend is forming.This is why our team of technical analysts has made it our Stock of the Day.There is a lot of bearish news coming from the company. It missed earnings. It also announced that CEO Tom Kingsbury will step down in January.Read Also: Cathie Wood-Led Ark Invest’s Latest Portfolio Maneuver: Dumps Tesla And Palantir Shares, Buys Amazon And AMD StockKohl's reported Q3 earnings of 20 cents per share. ...

Kohl's shares fell sharply on Tuesday after the company's earnings missed Wall Street estimates and following its announcement that CEO Tom Kingsbury will step down in January. The weak forecast underscores an uncertain holiday season for the retail sector, which could lean in favor of competitors such as Walmart and Amazon.com as customers turn increasingly bargain-focused."Our results did not meet expectations, and we're frankly disappointed sales have been a challenge for us throughout 2024 and weakened ...

At a P/E of 10 after its sell-off, Kohl's stock looks cheap.Kohl's (KSS -20.15%) stock collapsed after the company reported mixed earnings for its fiscal third quarter of 2024 Tuesday morning, falling 20% in the first 10 minutes of trading, as of 9:40 a.m. ET.Analysts forecast Kohl's would book $3.7 billion in sales for the third quarter ended Nov. 2, and Kohl's nailed that target. Unfortunately, they also forecast Kohl's would earn $0.27 per share -- but Kohl's earned only $0.20. Adding to investors' distr ...

Kohl's (KSS) reported $3.71 billion in revenue for the quarter ended October 2024, representing a year-over-year decline of 8.5%. EPS of $0.20 for the same period compares to $0.53 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $3.84 billion, representing a surprise of -3.32%. The company delivered an EPS surprise of -25.93%, with the consensus EPS estimate being $0.27.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how the ...

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 ...