KSS - Kohl's Q4 Earnings: Strong Finish To 2023 Muted Outlook Ahead

2024-03-12 08:59:32 ET

Summary

• Kohl’s is trading higher in the pre-market trading hours after releasing its Q4 and year-end results that topped expectations.
• Heading into the print, the retailer had high hopes for the continued success of its beauty categories. Optimism was also high for “impulse spending” through the holiday season.
• The latter was a risky bet, in my view, due to the greater propensity of a shopper in the current market to stretch a dollar than to sink it.
• Despite the consumer uncertainty, Kohl's ended the fiscal year on a strong note, with inventory down 10% YOY and profitability ahead of consensus estimates.
• While I view shares neutrally, I believe the stock is worth continued attention.

Shares in department store retailer, Kohl’s ( KSS ), have been treading water. Prior to the company’s Q4 results, the stock has essentially traded flat over the past year....

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