Skip to Content

Kohl's Corp KSS

Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

No-Moat Kohl's Acrimonious Activist Fight Ends Without Major Changes; Valuation Is Unfavorable

David Swartz Equity Analyst

Analyst Note

| David Swartz |

No-moat Kohl’s announced that it has reached an agreement with the group of activist shareholders who have been pushing for board seats and strategic changes. As part of the agreement, two of the activists’ board nominees, Margaret Jenkins and Thomas Kingsbury, will join Kohl’s board. Jenkins has primarily worked in marketing in the food-service industry. Kingsbury recently retired as CEO and chairman of narrow-moat Burlington, a direct competitor of Kohl’s. He will join Kohl’s board’s finance committee, which will give him a role in capital allocation decisions. Kohl’s will also add Christine Day, former CEO at narrow-moat Lululemon, to the board. Day was credited with building the athleisure leader in the years after its IPO but reportedly clashed with mercurial founder Chip Wilson. In addition, Kohl’s announced that two current board members will retire within the next year. We view these as beneficial changes to the board which, as the activists had argued, has been lacking in apparel retail and manufacturing experience.

Read Full Analysis

Company Profile

Business Description

Kohl’s operates 1,162 department stores in 49 states that sell moderately priced private-label and national brand clothing, shoes, accessories, cosmetics, and home furnishings. Most of these stores are in strip centers. Kohl’s also operates an e-commerce site (kohls.com) and 12 Fila athletic apparel outlets. Women’s apparel is Kohl’s largest category, having generated 25% of its 2020 sales. The retailer, headquartered in Menomonee Falls, Wisconsin, opened its first department store in 1962.

Contact
N56 W17000 Ridgewood Drive
Menomonee Falls, WI, 53051
T +1 262 703-7000
Sector Consumer Cyclical
Industry Department Stores
Most Recent Earnings Jan 31, 2021
Fiscal Year End Jan 29, 2022
Stock Type Cyclical
Employees 110,000

Related