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]

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]

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]

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]

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]

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]

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]

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]

Wall Street analysts expect Kohl's (KSS) to post quarterly earnings of $0.72 per share in its upcoming report, which indicates a year-over-year decline of 56.9%. Revenues are expected to be $5.35 billion, down 10.2% from the year-ago quarter.Over the last 30 days, there has been a downward revision of 52.2% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe. ...

Kohl's Corporation (KSS) is likely to register declines in the top and bottom lines when it reports fourth-quarter fiscal 2024 earnings on March 11. The Zacks Consensus Estimate for quarterly earnings has moved down a couple of cents in the past 30 days to 73 cents per share, indicating a decrease of 56.3% from the year-ago quarter’s reported figure. The consensus mark for fiscal 2024 earnings is pegged at $1.30 per share, reflecting a decline of 54.4% from the prior-year reported figure. KSS has a trailing ...