Lokibaho Investment Summary My previous investment thought on Kohl's Corporation (NYSE:KSS) (published on 3rd June 2024) was a sell rating because of the poor sales trend and the uncertain macro environment. Since my coverage, the stock has gone down by ~17%, pretty much in line with my expectation for a 20% decline. I still think the business fundamentals are being challenged in the near term, with little chance that KSS can meet its FY24 SSS growth guidance. However, because the valuation has already been ...

Key Takeaways Kohl's beat profit estimates for the second quarter, despite lower sales, as the discount department store operator cut costs. Kohl's warned about a challenging consumer environment but raised its full-year outlook for earnings per share. Kohl's shares edged higher Wednesday, but they've lost nearly a third of their value this year. Kohl's (KSS) shares rose Wednesday as cost reduction helped the retailer beat profit forecasts despite a drop in sales. Kohl's reported second-quarter earnings per ...

Kohl's Corporation NYSE: KSS finds itself navigating choppy waters in the turbulent sea of the retail sector. The renowned omnichannel retailer, known for its value-driven offerings and loyal customer base, recently released its second-quarter fiscal year 2024 earnings report. Kohl's earnings report release provided a picture of resilience despite the challenging retail environment. Get Kohl's alerts: Kohl's Q2 2024 Performance: Weathering the Storm Kohl's Today Kohl's $20.83 +1.23 (+6.28%) 52-Week Range $1 ...

Financial Data and Key Metrics Changes - Net sales decreased by 4.2% in Q2 and are down 4.7% year-to-date, with comparable sales declining by 5.1% in Q2 and 4.8% year-to-date [22] - Gross margin for Q2 was 39.6%, an increase of 59 basis points year-over-year, driven by inventory management and lower freight expenses [22] - SG&A expenses declined by 4.2% to $1.2 billion in Q2, benefiting from lower store-related expenses [23] - Net income for Q2 was $66 million, with earnings per diluted share at $0.59 [23] - Year-to-date operating cash flow was $247 million, an increase of $228 million from the previous year [24] Business Line Data and Key Metrics Changes - Sephora at Kohl's saw total beauty sales increase approximately 45%, with comparable beauty sales growing in the low-teens percent [7] - Home decor sales increased more than 35% year-over-year, while gifting sales rose over 30% [9][10] - Impulse sales grew by more than 70% due to the expansion of queue lines [11] - The intimate apparel business struggled, contributing to overall declines in the women's business [31] Market Data and Key Metrics Changes - Digital sales outperformed store sales, with overall transactions increasing [22][18] - The middle-income consumer segment is experiencing pressure from inflation and high interest rates, affecting spending behavior [13][19] Company Strategy and Development Direction - The company is focused on enhancing customer experience, simplifying value strategies, managing inventory and expenses, and strengthening the balance sheet [7] - New partnerships, such as with Babies "R" Us, are expected to broaden the customer base and drive sales growth [6][12] - The company plans to evolve marketing strategies to emphasize value and lower price messaging [14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging consumer environment, with customers exhibiting more discretion in spending [4][19] - The outlook for the remainder of the year assumes continued macroeconomic challenges, but the company remains confident in its strategic initiatives [6][27] - The company expects net sales to decrease by 4% to 6% for the full year, with comparable sales projected to decline by 3% to 5% [27] Other Important Information - The company reduced long-term debt by $113 million and revolver borrowings by $150 million compared to last year [13] - Capital expenditures year-to-date were $239 million, significantly less than the previous year's $338 million [25] Q&A Session Summary Question: Can you expand on the performance of women's and dresses in stores with Sephora? - Management noted that stores with dresses are performing better, and they are working to improve the overall women's business, which has faced challenges [30][31] Question: What is the cadence of demand through the quarter? - Management indicated a consistent quarter with no significant differences between regular pricing and clearance [34] Question: What percentage of customers cross-shop when making a Sephora purchase? - Approximately 35% of Sephora baskets include other Kohl's products, indicating a strong crossover [37] Question: What early reads are available for Babies "R" Us? - Early results show strong sales in baby gear and furniture, with a positive outlook as more stores open [42] Question: What is driving the increased margin leverage in the guidance? - The guidance reflects confidence in new initiatives and improved inventory management, despite a challenging sales environment [46][48]

Kohl's Corporation (KSS) posted mixed second-quarter fiscal 2024 results, with the bottom line increasing year over year and surpassing the Zacks Consensus Estimate. However, the top line declined and missed the consensus mark. During the quarter, KSS faced pressure from a challenging consumer environment and a decline in its core business. Customers became more selective with their spending, leading to lower sales despite an increase in transaction frequency. This overshadowed robust performance in key gro ...

For the quarter ended July 2024, Kohl's (KSS) reported revenue of $3.73 billion, down 4.2% over the same period last year. EPS came in at $0.59, compared to $0.52 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $3.8 billion, representing a surprise of -1.85%. The company delivered an EPS surprise of +28.26%, with the consensus EPS estimate being $0.46. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they co ...

Kohl's (KSS) came out with quarterly earnings of $0.59 per share, beating the Zacks Consensus Estimate of $0.46 per share. This compares to earnings of $0.52 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 28.26%. A quarter ago, it was expected that this department store operator would post earnings of $0.04 per share when it actually produced a loss of $0.24, delivering a surprise of -700%. Over the last four quarters, the co ...

| --- | --- | --- | --- | --- | --- | --- | |-------|----------------------------------------------|-------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | KOHLS | | | | | | | | Q2 2024 Results Presentation August 28, 2024 | | | | | | | | | | | | | | | | | | | | | | Cautionary Statement Regarding Forward-Looking Information This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The Company intends forward-looki ...

Kohl's Reports Second Quarter Fiscal 2024 Financial Results MENOMONEE FALLS, Wis.—(BUSINESS WIRE)—August 28, 2024— Kohl's Corporation (NYSE:KSS) today reported results for the second quarter ended August 3, 2024. • Net sales decreased 4.2% and comparable sales decreased 5.1% • Gross margin increased 59 basis points • Diluted earnings per share of $0.59 versus $0.52 in the prior year • Inventory declined 9% • Updates full year 2024 financial outlook • Committed to returning capital to shareholders through th ...

Kohl's Corporation KSS is expected to release earnings results for its second quarter, before the opening bell on Wednesday. Analysts expect the Menomonee Falls, Wisconsin-based company to report quarterly earnings at 45 cents per share, down from 52 cents per share in the year-ago period. Kohl's is projected to post revenue of $3.58 billion, according to data from Benzinga Pro. On Aug. 21, Telsey Advisory Group analyst Dana Telsey maintained Kohl's with a Market Perform and maintained a price target of $23 ...