[Note: Kohl’s fiscal year 2022 ended January 28, 2023]
Kohl’s stock (NYSE: KSS), a department store that features apparel, footwear, accessories, soft home products, and housewares targeted to middle-income customers, currently trades at $21 per share, around 67% below its level of $64 seen on May 17, 2021 (pre-inflation shock high), and has the potential for sizable gains. KSS saw its stock trading at around $24 on December 22, 2022, when the Fed kept increasing rates, and now remains down by about 13% from those levels. Kohl’s has been struggling since the pandemic as consumer buying habits have shifted away from department stores. While it operates an e-commerce platform, Kohl’s faces online competition even stronger than its brick-and-mortar rivals. So far in 2023, Kohl’s sales are down more than 5% through the first half of this year, and earnings have been more than halved. In fact, the retailer has been missing out on what’s proving to be at least a decent recovery for other store chains. The stock is quite cheap, and it will be interesting to see how the company moves ahead going forward. According to the company’s management, many of its strategic efforts are just underway, which are expected to contribute incrementally in the back half of the year, and even more so in 2024 and beyond.
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