Top 10 Cheap Stocks To Watch For 2017: Kohl's Corporation(KSS)
Advisors' Opinion:- [By Ben Levisohn]
Credit Suisse analysts Michael Exstein and Anjani Vedula call Kohl’s (KSS) the “canary in the coal mine” for mall retailers. They explain why:
Rarely does a sector see a secular shift as dramatic as the one now occurring in retail in general and the mall anchors specifically. After last year’s poor operating and stock performance, many retail investors are now expecting a significant cyclical recovery in margins. However, we do not think this is a realistic expectation because mall anchors’ expense structures have fundamentally changed for two reasons: 1) sales mix has shifted towards the lower margin e-commerce channel; 2) brick & mortar operating margins are increasingly pressured (on both an absolute dollar basis as well as % of sales basis), leading to lower operating margins in aggregate.
Using Kohl’s 10-K disclosure to illustrate this shift. We illustrate this secular shift in mall anchors’ expense structures by modelling the breakout in operating income for Kohl’s brick & mortar business (B&M) versus their e-commerce business. Kohl’s gives more details on the shift in SG&A than its peers, making it easier to illustrate the pressures the industry is under. In fact, in spite of the pressures, Kohl’s has maintained relatively constant sales as well as gross margins, no small feat considering they are absorbing shipping & handling charges associated with e-commerce. In effect, we are using Kohl’s as the “canary in the coal mine”, as a preview of a larger secular issue facing the mall anchor sector…
While all retailers with an e-commerce business are exposed to these secular changes to some degree, those with a higher e-commerce penetration are more exposed, sooner. On the brick & mortar operations side, those retailers with the lowest wage r! ates are likely to be most impact by the essentially industry-wide wage increases brought on b
- [By Ben Levisohn]
There’s been a lot of hand wringing about the dismal performance of department stores like Kohl’s (KSS), Macy’s (M), TJX Cos. (TJX), and Sears Holdings (SHLD) and what it says about the state of consumer spending. Yardeni Research’s Ed Yardeni argues that U.S. consumers are shopping, but that “Amazon (AMZN) is taking all the fun, and some of the profits, out of retailing…” He explains:
- [By Paul Ausick]
Rounding out the top 10 in terms of total installed solar PV capacity are Prologis Inc. (NYSE: PLD) with 108 MWs of installed capacity, Apple Inc.(NASDAQ: AAPL with 94 MWs, Costco Wholesale Corp. (NASDAQ: COST) with 51 MWs, Kohl’s Corp. (NYSE: KSS) with 50 MWs, IKEA with 44 MWs, Macy’s Incl. (NYSE: M) with 39 MWs, General Growth Properties Inc. (NYSE: GGP) with 30 MWs, and tied with 23 MWs, Hartz Mountain and Bed, Bath and Beyond Inc. (NASDAQ: BBBY).
- [By Ben Levisohn]
Shares of Kohl’s (KSS) are getting killed today after the retailer cut its full-year guidance as profit margins shrank. Citigroup’s Paul Lejuez and Tracy Kogan have the details:
Gabe Hernandez/The Monitor/Associated PressNot unlike its department store peers, Kohl’s had a tough 4Q. Though comps were up slightly (+0.4%), it was below consensus of +1.7% (though inline with our flat forecast) and margins were significantly below plan as the company needed promotions to drive sales. As we indicated in our 1/4/16 report An Object In Motion(Retail Physics Hold True For Holiday), we believe elevated inventories at dept stores will pressure GM in 1Q (and we believe this will hold true for Kohl’s). Given the tough landscape, and with 1,000+ stores across the country, we believe Kohl’s will continue to be challenged to drive sales and earnings higher, despite its many in-stor! e initiat! ives. We reiterate our Neutral rating…We are lowering our 2015E/2016E from $4.25/$4.29 to $4.00/$3.91. For 2016 we model comps 0-(1)% and op margin of 7.4% (down 80bps). We are lowering our TP from $49 to $46 to reflect our forecast reduction.
Shares of Kohl’s have tumbled 16% to $43.04 at 11:28 a.m. today, while Macy’s (M) has dropped 2.6% to $40.56, and Nordstrom (JWN) has fallen 5.7% to $47.64.
- [By WWW.THESTREET.COM]
One theme that's become apparent is that consumers are betting that a Trump tax cut will lead to more money in their pockets. That's good news for the so-called "trade-up" stocks like Nordstrom (JWN) and Kohl's (KSS) .
- [By Ben Levisohn]
Cituigroup’s Kate McShane and Corinna Van der Ghinst explain why they’re still bullish on Under Armour (UA) despite fears that its deal with Kohl’s (KSS) could result in slower growth:
source from Top Stocks For 2015:http://www.topstocksblog.com/top-10-cheap-stocks-to-watch-for-2017.html
