Kohls Smashes Q4 Earnings Expectations, Analyst Cuts Forecast On Disappointing Guidance, Turnaround Underway

Core Viewpoint - Kohls Corp reported a fourth-quarter earnings beat but faced a significant gross margin miss, leading to a decline in share price [1][2]. Financial Performance - The company managed to control SG&A expenses, resulting in a "solid" earnings performance despite the gross margin miss [1]. - Kohls' shares dropped by 7.38%, reaching $8.48 at the time of publication [4]. Future Outlook - The 2025 outlook provided by the company is significantly below market expectations, indicating challenges ahead [2]. - The CEO mentioned that strategic initiatives will be implemented over the next few quarters, but the turnaround will require time due to the long lead-time nature of the business [2][3]. Leadership and Strategy - New leadership aims to stabilize the business after years of volatility, but the timeline for achieving better profitability remains unclear [3]. - Despite improvements in product assortment, value proposition, and customer experience, regaining consumer trust will take time [3].