The downgrade reflects Kohl's continued EBITDA declines. The declines signal that the company may not be able to successfully execute an operating strategy to profitably defend market share in the secularly challenged department store space. Fitch views flattish revenue and EBITDA in the medium term as Kohl's best-case scenario. The company's recently reduced 2024 guidance suggests a rebased EBITDA of around $1 billion, below the $1.2 billion in Fitch's prior forecast.
David Silverman, CFA’s Post
More Relevant Posts
-
#KSS - Kohls Reports Second Quarter Fiscal 2023 Financial Results Kohl’s Corporation (NYSE:KSS) today reported results for the second quarter ended July 29, 2023. Net sales decreased 4.8% and comparable sales decreased 5.0% Diluted earnings per share of $0.52 Inventory declined 14% Reaffirms full year 2023 financial outloo... August 23, 2023 at 07:00AM #StockMarket #MWN
KSS - Kohl's Reports Second Quarter Fiscal 2023 Financial Results
marketwirenews.com
To view or add a comment, sign in
-
What's going on with Kohl's? Revenue down 5%+ YOY including -1% same store. "Digital is what's really dragging us down." A few theories but I don't have intimate knowledge: 1. The coupon stacking game they play is more of a doom loop than a flywheel. JC Penney went through this, tried to change course, which only failed worse. The biggest problem with the coupon stacking game is that, in order to make it more and more attractive year after year, it has to become more complex. This excites the most passionate coupon stackers but alienates the broad middle. It's too hard and annoying to shop. Yet, if you don't make it better, both the middle and the passionate crowds get bored. 2. Stores within stores can work. Co-branded stores tend to not. Within Neiman's you'll find a Louis Vuitton sub-store. These brands align well with one another and is a benefit to shoppers. Best Buy has used this tactic brilliantly with its most significant vendors. However, co-branding two previously separate, struggling brands into one store has a longer history of failure than success. Cinnabon and Schlotzsky's. Dunkin and Baskin (I wouldn't say Baskin has been 'saved' by this move.) Marble Slab even tried it with a more meal-centric brand. I think having a Sephora inside of a Kohl's could work. Co-branding the stores equally seems like confusing to the consumer. 3. The CEO is down on digital! Search "digital" in the link below and you'll see him say things like "Digital is what's really dragging us down." That's not to say I disagree with the premise that Kohl's must be omni-focused rather than channel-focused, but any retailer who will win over the next years MUST win in digital too. A 20% YOY drop in revenue in digital can't continue. Growing up in Milwaukee, I've always rooted for Kohl's and still do. What else am I missing with where they've gone off track? https://lnkd.in/d5PVBpY4
Kohl's (KSS) Q3 2023 Earnings Call Transcript | The Motley Fool
fool.com
To view or add a comment, sign in
-
“Surprise Losses?” Help me understand how a department store can have a surprise loss? They attribute it to “ongoing uncertainty" among consumers. Hmm do they not see the clothes and inventory piling up or their warehouse shelves overflowing? Their stock got slammed because of “ongoing uncertainty” alright but it was not because their consumers were uncertain. It was their inability to FORECAST! Truth: Analysts don’t like surprises! Boards don’t like surprises! CEO’s don’t like surprises! If you are running your business based on your typical financial statements you are missing the most important thing! You must see what’s happening NOW and anticipate the future. Last month’s numbers tell last month’s story. The world is changing rapidly. Accurate Forecasting Must be a priority! Curious 0-10 how would you rate your current forecasting process? 0 what forecasting process, 10 is we rock! https://lnkd.in/gPx5WRpG
Kohl's Tumbles on Surprise Loss, Lowered Guidance
investopedia.com
To view or add a comment, sign in
-
Corporate defaults are on the rise, and that means retailers already in distress could become even more pressured this year. A U.S. Distressed and Default Monitor report for March 2024 from Fitch Ratings noted that corporate defaults are on the rise due to leverage and looming debt maturities. While BDO restructuring expert David Berliner believes that 2024 won’t be a big year for fashion retail bankruptcies, he thinks retailers that are already struggling could find themselves running out of options as going-concern companies.
2024’s Retail Distress List is Growing, Experts Say
https://sourcingjournal.com
To view or add a comment, sign in
-
Buy & Sell Signals How To Trade Pvh $PVH: Stock Traders Daily has produced this trading report using a proprietary method. This methodology [...] Look at the Charts
How To Trade Pvh $PVH
news.stocktradersdaily.com
To view or add a comment, sign in
-
Kohl's Corp., facing inflation weary consumers not yet responding enough to the retailer’s series of merchandise upgrades, posted top and bottom line declines for the first quarter and cut its outlook for the year. For the quarter ended May 4, Kohl’s suffered a net loss of $27 million, or $0.24 per diluted share, compared to net income of $14 million, or $0.13 per diluted share in the prior-year period.
Kohl’s Reports Q1 Top and Bottom Line Declines, Cuts Forecast for the Year
https://footwearnews.com
To view or add a comment, sign in
-
Buy & Sell Signals How To Trade Pvh $PVH: Stock Traders Daily has produced this trading report using a proprietary method. This methodology [...] Look at the Charts
How To Trade Pvh $PVH
news.stocktradersdaily.com
To view or add a comment, sign in
-
Where Are Retail Investors Putting Their Money? By far the most popular strategy for retail investors is dividend investing with 50% of the respondents selecting it as something they’re interested in. #investing #stockmarket #retailinvestors #dividendinvesting #largecap
Charted: What are Retail Investors Interested in Buying in 2023?
https://www.visualcapitalist.com
To view or add a comment, sign in
-
Buy & Sell Signals Pvh ($PVH) Trading Report: Stock Traders Daily has produced this trading report using a proprietary method. This methodology [...] Look at the Charts
Pvh ($PVH) Trading Report
news.stocktradersdaily.com
To view or add a comment, sign in
-
The optimism of Ernie Herrman, CEO of The TJX Companies, Inc., was palpable during the company's latest earnings call. Herrman praised the company's flexible business model, broad customer base, and unique shopping experience, expressing confidence these attributes would continue to fuel growth both domestically and abroad. A review of the key points from the earnings call underlines the reasons for optimism: Business Performance: Reporting a strong performance for the third quarter, TJX Companies, Inc. exceeded expectations in sales, profitability, and earnings per share. Most notably, comparable store sales rose by 6%, propelled by a surge in customer traffic across all divisions. The Marmaxx division was especially noteworthy, boasting significant growth in both sales and customer traffic. Additionally, the company's apparel sales remained robust and the company reported exceptional growth for home sales, particularly at HomeGoods. Growth was also seen in comp sales and customer traffic in their Canadian and International divisions, according to statements made on the earnings call. Financial Strengths and Weaknesses: TJX Companies reported a robust merchandise margin, buoyed by decreased freight costs and efficient inventory management. Gross margin improved by 200 basis points year-over-year, even while maintaining an overall strong merchandise margin. Yet, the company also faced increased SG&A expenses – a result of incremental store wage costs, payroll costs and higher incentives. Furthermore, the closure of the HomeGoods online business incurred extra costs, depresses the pre-tax profit margin for Q3. Products, Services, or Activities: TJX Companies’ success is tied to its versatile business model, broad demographic reach and unique shopping experience. CEO Herrman pointed to these factors during the earnings call. Backed by its operational infrastructure and sourcing network that spans globally, the company delivers unbeatable value to customers. In addition, the strength of TJX’s buying team allows it to quickly adapt to ever-changing consumer preferences. Plans and Investments: Regarding the future, TJX Companies aims to capture holiday shopping, drawing from the unique selection of merchandise across its brands. It stressed the importance of refreshing its assortment in both brick-and-mortar stores and online in order to meet consumers' needs. Post-holiday, there are plans to transition stores strategically to meet emerging consumer demands. Highlighting the potential for growth both domestically and internationally, TJX Companies is positive about its long-term profitability. In order to achieve this, the company plans to invest in growing its business while also returning cash to shareholders through dividends and share buybacks. To get regular insights from top earnings calls from the world's major companies: - subscribe to the PSFK podcast - https://lnkd.in/e8fbZm6E
Podcast Unveiling TJX Companies' Optimistic Outlook: Key Insights from the Earnings Call
finance.yahoo.com
To view or add a comment, sign in