Core Insights - Kohl's stock has experienced a significant decline, with a loss of 80% over the past three years, closing at $8.12 compared to $40.54 previously [3][5] - The S&P 500 index, in contrast, gained 60% during the same period, highlighting the underperformance of Kohl's [3] - An initial investment of $5,000 in Kohl's would now be worth approximately $1,000, while the same investment in the S&P 500 would have grown to nearly $8,400 [4] Financial Performance - Kohl's has paid dividends of $0.50 per share per quarter until recently, when it was reduced to $0.125 per share, resulting in total dividends of nearly $700 over three years [4] - The total return from the initial $5,000 investment in Kohl's, after accounting for dividends, is approximately $1,700 [4] - The company projects earnings of $0.10 to $0.60 per share in 2025, which may not be sufficient to cover the new annual dividend of $0.50 [6] Market Challenges - Kohl's is facing ongoing challenges in the competitive retail industry, with same-store sales declining by 3.9% in the first fiscal quarter [5] - Management anticipates a further decline in same-store sales of 4% to 6% for the year, indicating a challenging outlook [5] - The reduction in dividends is often a warning sign of underlying issues within the company, which is evident in Kohl's current situation [5][7]
If You'd Invested $5,000 in Kohl's Stock 3 Years Ago, Here's How Much You'd Have Today