Core Viewpoint - Kohl's Co. shares have reached all-time lows following a disappointing fiscal fourth quarter earnings report, despite a commendable earnings-per-share (EPS) beat, with gloomy forward guidance [1][8]. Financial Performance - Kohl's reported an EPS of 95 cents, exceeding consensus estimates by 23 cents or 27%, but revenues fell 9.4% year-over-year (YOY) to $5.17 billion, missing the $5.19 billion consensus [7]. - Comparable sales decreased by 6.7% YOY, and inventory grew by 2% YOY to $2.9 billion [7]. - For fiscal 2026, management expects EPS between 10 cents to 80 cents, significantly below the consensus estimate of $1.18, with revenue expectations of $14.32 billion to $14.63 billion, missing the $15.45 billion consensus [8]. Leadership and Strategy - New CEO Ashley Buchanon, who took over on January 15, 2025, emphasized that any turnaround will take time and grounded expectations for immediate recovery [2][4]. - The company has implemented a three-pillar comeback strategy focusing on a balanced product assortment, reestablishing quality and value, and enhancing the omnichannel shopping experience [5][4]. Market Reaction - Following the earnings report, Kohl's stock plunged 24% the next day and continued to fall another 11% in subsequent days, reflecting a lack of confidence in the company's outlook [6]. - The market capitalization has fallen to less than $1 billion, while the company's real estate holdings are valued at over $6 billion, raising questions about potential value opportunities [9].

Core Viewpoint - Kohls Corp reported a fourth-quarter earnings beat but faced a significant gross margin miss, leading to a decline in share price [1][2]. Financial Performance - The company managed to control SG&A expenses, resulting in a "solid" earnings performance despite the gross margin miss [1]. - Kohls' shares dropped by 7.38%, reaching $8.48 at the time of publication [4]. Future Outlook - The 2025 outlook provided by the company is significantly below market expectations, indicating challenges ahead [2]. - The CEO mentioned that strategic initiatives will be implemented over the next few quarters, but the turnaround will require time due to the long lead-time nature of the business [2][3]. Leadership and Strategy - New leadership aims to stabilize the business after years of volatility, but the timeline for achieving better profitability remains unclear [3]. - Despite improvements in product assortment, value proposition, and customer experience, regaining consumer trust will take time [3].

Core Viewpoint - Kohl's Corp shares have experienced a significant decline, dropping 25.1% amid disappointing quarterly results and a bleak outlook for the upcoming year [1] Financial Performance - In the fourth quarter, Kohl's reported a revenue decline of 9.4% year over year and same-store sales decreased by 6.7% [2] - The earnings per share (EPS) for the quarter was $0.95, down from $1.67 in the previous year, although it exceeded Wall Street's expectation of $0.75 [2] Market Value and Trends - Over the past year, Kohl's has lost 65% of its market value, with its current market capitalization just above $1 billion, a significant drop from potential acquisition offers that valued it at up to $9 billion in 2022 [3] Future Outlook - The company's outlook for 2025 is pessimistic, expecting same-store sales to decline by 4% to 6%, which is worse than the anticipated 0.55% decline [4] - Kohl's has set an EPS target range of $0.10 to $0.60 for 2025, significantly below Wall Street's estimate of $1.24 [4] - Plans have been announced to cut approximately 10% of the corporate workforce and close 27 stores by April as part of efforts to improve the company's situation [4]

Group 1 - Kohl's Corporation (NYSE: KSS) has experienced a significant decline in share value, losing 63% over the past year due to unsuccessful turnaround efforts [1] - The company's repeated attempts to improve its business have not yielded positive results, continuing a trend of underperformance [1] Group 2 - The article does not provide any specific financial metrics or future projections for Kohl's Corporation [1]

Financial Data and Key Metrics Changes - Net sales declined by 9.4% in Q4 and 7.2% for the year, with comparable sales decreasing by 6.7% in Q4 and 6.5% for the year [28] - Gross margin in Q4 was 32.9%, an increase of 49 basis points, while for the full fiscal year 2024, gross margin increased by 50 basis points to 37.2% [36][37] - Adjusted net income for Q4 was $106 million, with adjusted earnings per diluted share at $0.95, and for the year, adjusted net income was $167 million with adjusted earnings per diluted share at $1.50 [40] Business Line Data and Key Metrics Changes - Sephora continued to be a strong sales driver with comparable beauty sales increasing by 13%, an acceleration from Q3 [31] - Accessories business excluding Sephora had a flat comparable sales performance, driven by strong performance in fashion and bridge jewelry [33] - Key growth categories such as impulse, gifting, home decor, and baby gear showed collective outperformance, although legacy home business remained challenged [35] Market Data and Key Metrics Changes - Store comparable sales declined by 3.1% in Q4 and were down 5.6% for the year, while digital business experienced a decline of 13.4% in Q4 and 8.7% for the year [29][30] - The decline in digital sales was attributed to softness in home categories and an online inventory suppression issue [30] Company Strategy and Development Direction - The company aims to offer a curated, balanced assortment that fulfills needs across all customers, reestablish itself as a leader in value and quality, and enhance its omnichannel platform for a frictionless experience [9][26] - The focus will be on strengthening proprietary brands and simplifying promotional offers to improve customer experience [13][19] - The company plans to rebuild cash balance, reduce reliance on revolver, and capitalize on opportunities to further reduce debt and overall leverage [49] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that the turnaround will take time and emphasizes the need for a clear vision and accountability in execution [8][27] - The macro environment presents uncertainty, particularly for lower-income customers who are constrained in discretionary spending [78][80] - The company expects net sales to decrease by 5% to 7% in 2025, with comparable sales expected to decrease by 4% to 6% [44] Other Important Information - The company announced the closure of 27 underperforming stores and one e-commerce fulfillment center, resulting in a one-time charge of $76 million [40][41] - Capital expenditures for 2025 are expected to be in the range of $400 million to $405 million, focusing on Sephora rollout and omnichannel enhancements [50] Q&A Session Summary Question: Assessment of merchandising strategy and confidence in returning to growth - Management sees significant opportunity in product offerings, value, and quality, acknowledging past missteps that created friction with core customers [54][56] Question: Implications for margins with private label brands and promotional offers - Management believes there is potential to improve efficiency in promotions and allocate savings to enhance price points, while also addressing the mix of proprietary and national brands [62][65] Question: Store profile and merchandise assortment - The company has a healthy store fleet with very few unprofitable stores, and management is focused on reallocating space effectively among categories [72][73] Question: Customer performance and macroeconomic factors - Management notes a bifurcation in customer income levels, with lower-income customers facing challenges, impacting discretionary spending [78][80] Question: Initiatives and changes in the business - Management outlines that changes will take time, with tactical short-term moves being prioritized while developing a long-term strategy [86][88] Question: Expectations for Sephora and addressing core customer friction - Sephora is expected to continue driving new customers, but management acknowledges that past changes caused friction with the core customer base [107][111] Question: Promotion efficiency and cost allocation - Management discusses the need to improve promotional strategies to better align with customer expectations and enhance perceived value [118][119]

Core Insights - Kohl's is anticipating a challenging 2025 as the new CEO initiates a long-term turnaround strategy, projecting a revenue decline of 5% to 7% for the year, with comparable sales down 6.5% for the quarter [1] - The CEO acknowledged that many of the company's issues were self-inflicted due to past decisions, emphasizing the need to reconnect with loyal customers [2] - The company has recognized that the exclusion of private brands and certain brands from coupons has led to customer confusion and frustration, which is now being addressed [3] Customer Behavior and Market Conditions - Customers are increasingly seeking value, particularly those with lower income levels, indicating a broader trend of consumers feeling financially constrained [4] - The notion of living paycheck-to-paycheck is not solely tied to financial hardship but also reflects how individuals manage their income [5] - The CEO expressed optimism about Kohl's recovery but noted that restoring growth will require time and a thorough review of the business strategy [5]

Core Insights - Kohl's exceeded earnings expectations with adjusted EPS of $0.95, surpassing the forecast of $0.72, while revenue reached $5.2 billion, slightly above the anticipated $5.193 billion [2][3] Financial Performance - Q4 2024 adjusted EPS was $0.95, down 43.1% from $1.67 in Q4 2023 [3] - Revenue for Q4 2024 was $5.2 billion, a 9.4% decline from $5.71 billion in Q4 2023 [3][6] - Gross margin improved to 32.9%, up 0.5 percentage points from 32.4% in the previous year [3][7] - Operating income fell to $126 million, a 57.9% decrease from $299 million in Q4 2023 [3][6] Business Strategy - Kohl's focuses on a balanced merchandise mix of national and private brands, aiming to attract diverse shopper demographics [4] - Strategic initiatives include exclusive brand partnerships, such as with Sephora, and enhancing e-commerce capabilities to maintain competitive advantage [5] Challenges and Market Conditions - The company faced a 9.4% year-over-year decline in net sales, attributed partly to the calendar effect of an additional week in the previous fiscal year [6] - Comparable sales decreased by 6.7%, indicating ongoing challenges in sales performance [6] - The competitive retail landscape, particularly from online retailers and off-price stores, poses significant challenges [9] Future Outlook - For fiscal year 2025, Kohl's anticipates a 5% to 7% decrease in net sales and a 4% to 6% decline in comparable sales [11] - Projected operating margin is between 2.2% to 2.6%, with diluted EPS expected to range from $0.10 to $0.60 [11] - Management plans to invest $400 million to $425 million in capital expenditures to enhance fulfillment capabilities and customer experiences [12]

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Summary of Key Points Core Viewpoint - Kohl's reported quarterly earnings of $0.95 per share, exceeding the Zacks Consensus Estimate of $0.72 per share, but down from $1.67 per share a year ago, indicating a significant earnings surprise of 31.94% [1] Financial Performance - The company achieved revenues of $5.4 billion for the quarter ended January 2025, surpassing the Zacks Consensus Estimate by 0.94%, but down from $5.96 billion year-over-year [2] - Over the last four quarters, Kohl's has surpassed consensus EPS estimates two times and topped revenue estimates only once [2] Stock Performance and Outlook - Kohl's shares have declined approximately 14.2% since the beginning of the year, compared to a 4.5% decline in the S&P 500 [3] - The company's earnings outlook is currently unfavorable, leading to a Zacks Rank of 5 (Strong Sell), suggesting expected underperformance in the near future [6] Future Earnings Expectations - The current consensus EPS estimate for the upcoming quarter is -$0.28 on revenues of $3.23 billion, and for the current fiscal year, it is $1.10 on revenues of $15.78 billion [7] - The outlook for the retail industry, particularly the Retail - Regional Department Stores sector, is in the bottom 10% of Zacks industries, which may negatively impact stock performance [8]

Kohl’s (KSS) Q4 2025 Earnings Call March 11, 2025 09:00 AM ET Company Participants Trevor Novotny - Senior Finance Manager, Investor RelationsAshley Buchanan - CEOJill Timm - Chief Financial OfficerDana Telsey - CEO and Chief Research OfficerOliver Chen - Managing Director - Retail, Luxury, New Platforms Sector HeadMichael Binetti - Senior Managing DirectorAshley Helgans - Senior Vice PresidentBrooke Roach - Vice President - Equity Research Conference Call Participants Mark Altschwager - Senior Research Ana ...