KSS - Kohl's: Mitigating The Impact Of Regulatory Changes To Credit Card Late Fees

2024-04-26 12:10:11 ET

Summary

• Regulatory changes to credit card late fees are expected to drive a potential $140 million reduction in other revenue for Kohl's in 2024.
• Kohl's is continuing to convert private label cardholders to its co-brand credit card, which may help boost 2025 other revenues closer to 2023 levels.
• Kohl's expects some gross margin improvement as well, so its operating margins may only be down slightly despite the reduced credit revenue.
• Real estate remains a potential source of value.

Kohl's Corporation ( KSS ) is dealing with the negative impact of regulatory changes to credit card late fees. These changes may reduce Kohl's credit revenue by over $200 million per year, which is a significant amount given that Kohl's reported $717 million in operating income in 2023....

For further details see: