The Company in a Nutshell
- Kohl’s is successfully shifting its business toward e-commerce – it even has a partnership with Amazon.
- The company uses its wide store network to reach the population and make online exchange/return easy.
- Sadly, KSS is facing fierce competition and is showing difficulty standing out in this crowded space.
- We do not cover Kohl’s at the moment.
Date Reviewed | N/A |
Company Name | Kohls Corp |
Symbol | KSS |
Sector | Consumer Discretionary |
Industry | Department Stores |
Beta | 1.957 |
PRO Rating | 3 |
Dividend Safety | 3 |
Business Model
Kohl's Corporation is an omnichannel retailer. The Company operates approximately 1,174 stores and a Website (www.Kohls.com). The Company’s Kohl's stores and Website sell private and national brand apparel, footwear, accessories, beauty, and home products. Its Kohl's stores generally carry a consistent merchandise assortment with some differences attributable to local preferences, store size, and Sephora at Kohl's shop-in-shops (Sephora shops). Its Website includes merchandise which is available in its stores, as well as merchandise that is available only online. Its merchandise mix includes both national brands and private brands that are available at Kohl's. Its private portfolio includes various brands, such as Croft & Barrow, Jumping Beans, SO, Sonoma Goods for Life, and Tek Gear, and brands that are developed and marketed through agreements with nationally recognized brands, such as Food Network, LC Lauren Conrad, Nine West, and Simply Vera Vera Wang.
Current price | 18.61 |
ROE | 8.30 % |
ROIC | 5.45 % |
Shareholder Yield | 1.95 % |
5-Yr Total Return | -48.55 % |
1-Yr Total Return | -5.05 % |
Next Earnings Date | 11-19-24 |
Latest Quarter Information
What the CEO said:
“Our first quarter results did not meet our expectations and are not reflective of the direction we are heading with our strategic initiatives. Regular price sales increased year-over-year, with early success in underpenetrated categories, positive trends in our Women’s business, and continued strong growth in Sephora. However, lower clearance sales versus last year represented a more than 600 basis point drag on comparable sales. Importantly, we were able to deliver gross margin expansion, manage inventory down 13% and tightly control expenses in the quarter.”
What we say:
06-21-2024. Kohl’s Corp. Q1’24 sales decreased 5.3% YoY to $3.2B, with comparable sales down 4.4%. Gross margin was 39.5%, an increase of 48 bps. Selling, general & administrative (SG&A) expenses decreased 0.8% to $1.2B, but rose 166 bps as percentage of revenue to 36.3%. Net loss was $27M, or ($0.24) per diluted share, compared to a net income of $14M, or $0.13 per diluted share in Q1’23. Inventory was $3.1B, a decrease of 13% year-over-year. Operating cash flow was a use of $7M as compared to a use of $202M in the Q1’23.
Investment Thesis
Dividend Triangle
5-Yr Rev. Growth | -2.90 % |
5-Yr EPS Growth | -10.05 % |
5-Yr Div Growth | -3.90 % |
Potential Risks
Debt/Equity | 1.15 |
Financial Debt to EBITDA (TTM) | 3.25 |
Current Ratio (Quarterly) | 1.30 |
Credit Score | 12 |
Dividend Growth Perspective
Dividend ($) | 2 |
Dividend Yield Fwd | 10.55 % |
Dividend Frequency | Quarterly |
Average 5-Yr Yield | 4.25 % |
Payout Ratio (%) | 70.35 |
Cash Payout Ratio (%) | 31.15 |
DGR 1-Yr | 0.00 |
DGR 3-Yr | 41.65 |
DGR 5-Yr | -3.90 |
DGR Streak | |
Chowder Score | 6.65 |
Next DVD PMT | 09-25-24 |
Valuation
(Data for `ddm_recent_annual_dividend` field are missing to build DDM tables)
Video Tutorial: How to Read the Stock Cards DDM Valuation
Market Cap | 2 B |
PE Ratio | 7.45 |
Fwd PE | 9.60 |
Price to Book Ratio | 0.55 |
DDM Valuation | N/A |
Average 5-Yr PE | 11.86 |
Value Score | 100 |
- All financial metrics are updated weekly.
- The DSR PRO rating and Dividend Safety Score are updated quarterly.
- The analysis (investment thesis, risk potential, dividend growth perspective and DDM calculation) is reviewed every 6 months.
- The PDF format includes only comments (no metrics) and is reviewed every 6 months.