QUOTE AND NEWS
Market Intelligence Center  Apr 13  Comment 
Friday’s trading in Kohl's Corp (KSS) gives options traders an opportunity for a 11.11% return. By selling the Jul. '15 $77.50 call and buying the Jan. '16 call at the $60.00 level for a net debit of $15.75, traders will book a profit as long as...
Benzinga  Apr 10  Comment 
In a report published Friday, Credit Suisse analysts said that the shares of Kohl's Corp (NYSE: KSS) already seems to be pricing in a "major turnaround" or a "potential buyout." Kohl's shares have been trading at a 5 percent premium to...
TheStreet.com  Apr 10  Comment 
NEW YORK (TheStreet) -- Consumers seeking bargains have been shopping at the retailers who discount brand -named apparel, footwear and home goods: Kohl's , Ross Stores and TJX Companies . Each of these popular stores set all-time...
Benzinga  Apr 9  Comment 
Kohl's Corporation (NYSE: KSS) shares may be up 27 percent year-to-date but an analyst said Thursday the company faces significant competition and constraints on its profit margin. Argus Research's Christopher Graja maintained a Hold rating on...
Market Intelligence Center  Mar 27  Comment 
With bullish technical indicators and a 2 STARS (out of 5) sell ranking from Standard & Poor’s, Kohl's Corp (KSS) could be an attractive play for investors according to MarketIntelligenceCenter.com's patented option-trade picking algorithms. A...
Forbes  Mar 26  Comment 
Kohl’s is betting on items like Gaiam yoga pants, NutriBullet blenders and Fitbit fitness-tracker wristbands to add $1 billion in sales to its $2 billion health-and-wellness business in three years.
Market Intelligence Center  Mar 12  Comment 
Kohl's Corp (KSS) is a good candidate for a covered call at the $72.50 level. The Jul. '15 call at that price should fetch a credit of about $4.60, which means the entire position has a net debit of about $69.25. This trade has 4.54% downside...
Clusterstock  Mar 9  Comment 
Department store chain Kohl's is women's favorite place to shop for clothes, according to a new  Piper Jaffray  report on female shoppers' spending habits. Coming in second place behind Kohl's was Macy's, followed by JCPenney, Wal-Mart,...
Forbes  Mar 5  Comment 
Looking at the universe of stocks we cover at Dividend Channel, on 3/9/15, Twenty-First Century Fox Inc (NASD: FOX), General Motors Co. (NYSE: GM), and Kohl's Corp. (NYSE: KSS) will all trade ex-dividend for their respective upcoming dividends....




 

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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