Kohl's (KSS) Stock Forecast & Price Target

Kohl's reported a 2% increase in digital sales and a 30% year-over-year rise in impulse sales, indicating strong consumer engagement and sales momentum. The company demonstrated effective cost control with SG&A expenses at 35.3%, bettering both consensus estimates and prior year comparisons, while also experiencing a 50 basis point expansion in gross margin to 39.6% due to improved product mix and inventory management. Additionally, the acceleration in sales among Kohl’s card customers and a notable rebound in men's apparel underscore the retailer's successful strategies in re-engaging its core demographic and enhancing brand performance.

Kohl's has experienced a contraction in its operating margin, which decreased by 50 basis points year-over-year to 2.2%, indicating ongoing profitability challenges amid higher costs. Additionally, the retailer's net sales fell by 2.9% year-over-year to $3.407 billion, while same-store sales are projected to decline by 4.0%, reflecting a weakening demand for its merchandise. Furthermore, Kohl's cash reserves have decreased to $144 million from $174 million year-over-year, highlighting potential liquidity concerns as sales continue to falter.