Kohl's Posts Q4 Sales Miss, Analyst Cuts Price Target On Delay In Winning Back Consumers
Priya Nigam 7 months ago
Analyst ColorEarningsPrice TargetReiterationAnalyst Ratings
Kohl's Q4 sales miss expectations, but decline slows. Analyst cuts PT and predicts future sales and earnings decline.
Kohl's Corp (NYSE:KSS) fourth-quarter sales came in below expectations, but the decline in its total sales and comps decelerated sequentially, according to Telsey Advisory Group’s analyst Dana Telsey
The Kohl's Analyst: Telsey reiterated a Market Perform rating, while cutting the price target from $23 to $17.
The Kohl's Thesis: The company's net sales declined 3.9% year-on-year, and comps declined 2.8%, mainly due to a decline in store transactions and pressure from winter storms in January, Telsey said in the note.
Check out other analyst stock ratings.
"Despite the sales miss, management noted the progress it has made to strengthen its foundation and stabilize the business," she added.
Sales are expected to contract in 2026, and margin pressure is expected to continue, resulting in a decline in earnings, the analyst stated.
It may still take Kohl's some time to win back consumers "after the company improves its assortment, value equation, and customer experience," she further wrote.
KSS Price Action: Shares of Kohl's had declined by 2.4% to $14.23 at the time of publication on Wednesday.
Image: Shutterstock