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CNNMoney.com  Sep 18  Comment 
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Benzinga  Sep 18  Comment 
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TheStreet.com  Sep 18  Comment 
NEW YORK (TheStreet) -- Shares of Kohl's Corp. are higher by 1.11% to $62.20 in pre-market trading on Thursday, following a ratings upgrade to "buy" from "neutral" at Citigroup. The firm said it raised its rating on the department store as it's...
Benzinga  Sep 18  Comment 
In a note date September 17, Citi analyst Oliver Chen upgraded shares of Kohl's Corporation (NYSE: KSS) from Neutral to Buy and raised the price target from $63 to $70. Looking forward, Chen commented, "We expect an improved product...
Benzinga  Sep 18  Comment 
Analysts at Citigroup upgraded Kohl's (NYSE: KSS) from Neutral to Buy. Kohl's shares have gained 16.69% over the past 52 weeks, while the S&P 500 index has surged 15.85% in the same period. Kohl's shares rose 0.67% to close at $61.52...
TheStreet.com  Sep 18  Comment 
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CNNMoney.com  Sep 17  Comment 
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DailyFinance  Sep 16  Comment 
ST. PETERSBURG, FL--(Marketwired - September 16, 2014) - All Children's Hospital Johns Hopkins Medicine received a $215,980 grant from Kohl's Department Stores to continue its Kohl's Cooks for Kids community-based healthy living program for the...
SeekingAlpha  Sep 16  Comment 
By ICRA Online Ltd.: Brookfield-based department store chain Kohl's Corp. (NYSE:KSS) is renowned for fashion and home furnishing products that are high on style and quality. Founded in 1946 as a supermarket, the company's first store opened its...




 

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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