Cautious Outlook for Kohl’s: Hold Rating Amid Declining Sales and Earnings, Dividend Cut, and Uncertain Market Conditions

Analyst Paul Lejuez from Citi maintained a Hold rating on Kohl’s (KSS – Research Report) and keeping the price target at $11.00.

Paul Lejuez has given his Hold rating due to a combination of factors impacting Kohl’s financial outlook. The company’s recent quarterly results showed a significant decline in comparable sales and earnings per share, although they were slightly better than consensus estimates. However, the primary concern is the company’s forward guidance, which indicates a substantial drop in expected sales and earnings, far below market expectations.
Additionally, the management’s decision to cut the dividend by 75% signals a cautious approach towards preserving cash amid uncertain market conditions. The new CEO’s initial guidance has set lower benchmarks, reflecting potential challenges in the retail environment and softening consumer trends. These factors contribute to a cautious outlook, warranting a Hold rating as investors await further clarity on the company’s strategic direction and performance under the new leadership.

In another report released yesterday, TD Cowen also maintained a Hold rating on the stock with a $8.00 price target.

KSS’s price has also changed dramatically for the past six months – from $19.080 to $9.150, which is a -52.04% drop .