Trading for Kohl's (KSS, Financial) was paused this morning following a volatility trading halt. This interruption is a routine procedure enacted to manage rapid price fluctuations and maintain market stability. Investors will need to stay tuned as the situation develops and trading resumes.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 13 analysts, the average target price for Kohl's Corp (KSS, Financial) is $7.23 with a high estimate of $9.00 and a low estimate of $4.00. The average target implies an downside of 52.41% from the current price of $15.19. More detailed estimate data can be found on the Kohl's Corp (KSS) Forecast page.
Based on the consensus recommendation from 16 brokerage firms, Kohl's Corp's (KSS, Financial) average brokerage recommendation is currently 3.5, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Kohl's Corp (KSS, Financial) in one year is $19.80, suggesting a upside of 30.37% from the current price of $15.187. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Kohl's Corp (KSS) Summary page.
KSS Key Business Developments
Release Date: May 29, 2025
- Net Sales: Declined 4.1% in the first quarter.
- Comparable Sales: Decreased 3.9% in the quarter.
- Gross Margin: Increased by 37 basis points to 39.9%.
- SG&A Expenses: Decreased 5.2% to $1.2 billion.
- Net Loss: $15 million, with earnings per diluted share of negative $0.13.
- Jewelry Sales: Increased by 10% in the quarter.
- Sephora Sales: Net sales up 6%, comparable sales up 1%.
- Digital Sales: Declined 7.7% in the quarter.
- Operating Cash Flow: Use of cash of $92 million.
- Capital Expenditures: $110 million for the quarter.
- Inventory: Up 1.7% compared to last year.
- Interest Expense: $76 million, a decrease of $7 million from last year.
- Cash and Cash Equivalents: Ended the quarter with $153 million.
- Dividend: Returned $14 million to shareholders.
- Debt Refinancing: Completed a private offering of $360 million in senior secured notes due 2030.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Kohl's Corp (KSS, Financial) reported first-quarter results that exceeded expectations, indicating early positive impacts from their strategic initiatives.
- The company has successfully completed the rollout of Sephora shops in all stores, contributing to a nearly $2 billion beauty business with positive sales growth.
- Kohl's Corp (KSS) has seen a strong response in their jewelry business, with sales up 10% in the quarter, driven by their loyal Kohl's card customers.
- The company is focusing on proprietary brands, which have shown sequential improvement, contributing to better margins and resonating well with core customers.
- Kohl's Corp (KSS) is making progress in enhancing their omnichannel platform, optimizing store layouts, and improving in-stock rates, which have led to better performance in key categories.
Negative Points
- Despite the positive first-quarter results, Kohl's Corp (KSS) is still in the early stages of a turnaround, with much work remaining to achieve sustainable growth.
- The digital business underperformed with a 7.7% decline in sales, partly due to underperformance in the home category and core credit customer segment.
- Kohl's Corp (KSS) continues to face challenges with their core Kohl's card customers, who are giving less wallet share due to past strategic decisions.
- The company is navigating a fluid and uncertain macroeconomic environment, including tariff pressures, which could impact future performance.
- Women's apparel has been underperforming due to an over-assortment of new brands and a shift away from proprietary brands, requiring further adjustments to regain growth.
