QUOTE AND NEWS
StreetInsider.com  Mar 25  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Management+Changes/Kohls%27+%28KSS%29+Merchandising+Chief+Brennan+Resgins/9312905.html for the full story.
Wall Street Journal  Mar 25  Comment 
Yahoo  Mar 13  Comment 
On Thursday, the department store chain is relaunching its home goods sections. The retailer wants to recapture former clients and go head to head with rivals like Target Corp (TGT) and Kohl's Corp. (KSS) In 2006, home products generated about 20...
Forbes  Feb 27  Comment 
Leading up to Kohl's' announcement of its fourth-quarter earnings on Thursday, February 27, 2014 analysts have become more wary as expectations have fallen over the past month to earnings of $1.53 per share from earnings of $1.63 per share.The...
StreetInsider.com  Feb 27  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Upgrades/Sterne+Agee+Upgrades+Kohl%27s+%28KSS%29+to+Buy/9225419.html for the full story.
SeekingAlpha  Feb 27  Comment 
Kohl's (KSS) Q4 2013 Earnings Call February 27, 2014 8:30 am ET Executives Wesley S. McDonald - Chief Financial Officer, Principal Accounting Officer and Senior Executive Vice President Kevin Mansell - Chairman, Chief Executive...
Benzinga  Feb 27  Comment 
Kohl's (NYSE: KSS) reported a 12% drop in its fiscal fourth-quarter earnings. Kohl's posted its quarterly profit of $334 million, or $1.56 per share, versus a year-ago profit of $378 million, or $1.66 per share. Its revenue slipped 12% to...
Wall Street Journal  Feb 27  Comment 
Kohl's fiscal fourth-quarter earnings fell 12%, as the retailer's sales were hurt by reduced traffic and lower levels of clearance merchandise during January, which offset modest growth in the previous two months.
StreetInsider.com  Feb 27  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Earnings/Kohl%27s+Corp.+%28KSS%29+Tops+Q4+EPS+by+2c%3B+Comps+Down+2%25/9223293.html for the full story.
Benzinga  Feb 27  Comment 
Some of the stocks that may grab investor focus today are: Wall Street expects Kohl's (NYSE: KSS) to report its Q4 earnings at $1.54 per share on revenue of $6.10 billion. Kohl's shares climbed 0.11% to $54.50 in after-hours...
SeekingAlpha  Feb 12  Comment 
By Justin Kuepper: Destination Maternity Corp. (NASDAQ: DEST) is a designer and retailer of maternity apparel in the U.S. through a network of nearly 2,000 specialty retail stores across all 50 states, as well as through partners like Kohl's...




 

Kohl’s (NYSE: KSS) is a U.S. department store chain that sells a mix of items including men's and women's apparel, home decor, and accessories. The department store appeals to middle-class consumers by selling discounted branded and private label clothing and home goods. Kohl's is in the same category of national department store competitors such as J.C. Penney (JCP) and Macy's Inc. (M).

Kohl's is vulnerable to a weak U.S. economy and declining consumer spending because the company has no stores outside of the US and does not have an international presence to serve as a buffer to fluctuations in the US economy. However, Kohl's discounted pricing allows it to ride out tough economic times better than its competitors.

Company Overview

Business Financials

Kohl’s operates specialty department stores and an e-commerce site in the United States that sell moderately-priced branded and private label merchandise.

Business Segments

Kohl's reports its sales in six different business segments:

  • Women's (32% o
  • Home (18% of net sales)
  • Children's (13% of net sales)
  • Accessories (10% of net sales)
  • Footwear (8% of net sales)

Kohl's stores and e-commerce site carries a variety of clothing, accessories and home goods. The company's merchandise offerings include products from branded manufacturers, such as Nike, in addition to exclusive and [[private labr Vera Wang and the Chaps brand that Kohl's offers exclusively from Polo Ralph Lauren (RL).

Business Growth

FY2010 (ended January 30, 2011)[1]

  • Net sales increased 7.1% to $18.4 billion.
  • Net income increased 12.4% to $1.1 billion.

Trends and Forces

Growing Kohl's Exclusive and Private Brands

Exclusive and private label merchandise account for almost half of Kohl's sales, a figure Kohl's has worked to increase by adding new exclusive brands like Helix, Mudd, Dana Buchman, and Hang Ten.

Department stores are increasingly seeking to distinguish themselves and earn higher profit margins by offering exclusive brands and private label brands. Exclusive brands are brands marketed under the wholesaler's name that are sold only in a particular chain; one exclusive brand at Kohl's is the Chaps line by Polo Ralph Lauren (RL). Private label brands are produced by wholesalers, but sold under the brand name of the retailer. Exclusive brands such as Simply Vera by fashion designer Vera Wang, can help draw customers into Kohl's stores, as the products can only be found at Kohl's. Kohl's own private label products are typically priced lower than branded merchandise, but have a higher profit margin for Kohl's as the retailer is able to receive the good at a lower cost by avoiding branded manufacturers.

Higher Raw Materials Costs May Force An Increase In Clothing Prices

In a recovering economy, the last thing that consumers want is higher prices, especially on necessities like clothing. Many in the fashion industry are expecting price increases of as much as $2 for a t-shirt. As consumers ease back into discretionary spending, higher clothing prices delay the recovery as they discourage spending. Companies like Kohl's rely on consumers spending money on clothes, and if higher prices discourage consumer spending, the company's bottom line will suffer due to these significant factors. blab

Competition

Kohl’s is one of the smallest national department store retailers. It competes primarily against other department stores, but also is facing increasing competition from discounters and mass merchandisers like Target (TGT) and Wal-Mart (WMT) as these companies grow their clothing and home goods categories.

Kohl's primary competitors are moderate-priced department stores, J.C. Penney (JCP), Macy's Inc. (M) and Sears Holdings (SHLD). Kohl's main points of differentiation from these other companies is Kohl's usage of the off-mall store model and low prices. These factors have played key roles in Kohl's ability to cope with recessionary environment while its competitors have lost more sales than Kohl's as shoppers trade down and visit malls less frequently.

References

  1. KSS 2010 10-K pg. 13
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