M - Kohl's: Mixed Q1 Results May Be Causing Too Much Negativity
2024-05-30 12:51:03 ET
Summary
- Kohl's Corporation shares plunged over 20% after disappointing earnings and lowered guidance; the decline wiped out nearly all the company's gains over the past year.
- The weakness was driven by lower clearance sales, but low inventory is likely the culprit here.
- With resilient full-priced sales, solid free cash flow, and a secure dividend, this drop could be an attractive entry point.
Shares of Kohl's Corporation ( KSS ) plunged by over 20% on Thursday, after the company reported disappointing Q1 earnings and cut guidance . This decline has wiped out nearly all of its gains over the past year and has brought shares near multi-year lows. With a lower-income clientele than Macy’s (M), there are concerns Kohl’s is seeing increased pressure, though the stock is now pricing in a fairly dire scenario for the company. I would be a buyer of KSS stock on this drop....
Kohl's: Mixed Q1 Results May Be Causing Too Much Negativity