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Why Kohl's Stock Is Plummeting Today
KSSKohl’s(KSS) The Motley Fool·2025-03-11 19:34

Core Viewpoint - Kohl's Corp shares have experienced a significant decline, dropping 25.1% amid disappointing quarterly results and a bleak outlook for the upcoming year [1] Financial Performance - In the fourth quarter, Kohl's reported a revenue decline of 9.4% year over year and same-store sales decreased by 6.7% [2] - The earnings per share (EPS) for the quarter was 0.95,downfrom0.95, down from 1.67 in the previous year, although it exceeded Wall Street's expectation of 0.75[2]MarketValueandTrends−Overthepastyear,Kohl′shaslost650.75 [2] Market Value and Trends - Over the past year, Kohl's has lost 65% of its market value, with its current market capitalization just above 1 billion, a significant drop from potential acquisition offers that valued it at up to 9billionin2022[3]FutureOutlook−Thecompany′soutlookfor2025ispessimistic,expectingsame−storesalestodeclineby49 billion in 2022 [3] Future Outlook - The company's outlook for 2025 is pessimistic, expecting same-store sales to decline by 4% to 6%, which is worse than the anticipated 0.55% decline [4] - Kohl's has set an EPS target range of 0.10 to 0.60for2025,significantlybelowWallStreet′sestimateof0.60 for 2025, significantly below Wall Street's estimate of 1.24 [4] - Plans have been announced to cut approximately 10% of the corporate workforce and close 27 stores by April as part of efforts to improve the company's situation [4]