- Kohl’s Corporation ( NYSE: KSS ) announced that its board decided to end its strategic review process.
- The department store pointed to the current financing and retail environment being reflected in the price and terms of FRG’s most recent proposal.
- "After engaging with more than 25 parties in an exhaustive process, FRG emerged as the top bidder and we entered into exclusive negotiations and facilitated further due diligence. Despite a concerted effort on both sides, the current financing and retail environment created significant obstacles to reaching an acceptable and fully executable agreement."
- Moving ahead, the Kohl's board the reaffirmed its commitment to execute a $500M accelerated share repurchase program as part of a $3B share repurchase plan.
- The Kohl's Board and management team also noted that they remain committed to creating value for shareholders and are exploring further opportunities in the near and long term.
- Kohl' ( KSS ) also provided a guidance update. The company said it is seeing a softening in consumer spending and now expects sales to be down high-single digits for Q2 vs. a prior view for sales being low-single digits relative to last year.
- Shares of Kohl's fell 11.18% in premarket trading to $31.70 to mark a new 52-week low.
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Kohl's plunges after ending strategic review, warning on soft Q2 sales