Kohl's Expects Long Turnaround As Shoppers Are ‘Pretty Constrained'

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]