Nomura Securities Reiterates a 'Neutral' on Kohl's (KSS); Sales Sluggish: New Strategy To Shrink Inventory
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Price: $51.91 -0.44%
Rating Summary:
2 Buy, 11 Hold, 3 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Rating Summary:
2 Buy, 11 Hold, 3 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Trade KSS Now!
Nomura Securities reiterates a 'Neutral' on Kohl's (NYSE: KSS) price target of $52.00.
Analyst, Paul Lejuez, said, "The company is making changes to its pricing and promotional strategy, lowering price points and trying to make the value msg more clear in its advertising. In the early days, sales have been weak and it is tough to tell how much is due to lack of inventory. Mgmt expects May comps to be below 0-1% guidance for 2Q. There is no change to our F12E of $4.60 (vs. guidance of $4.75 and cons of $4.73)."
"While the company has done a good job of managing expenses, the top line remains slow to improve. Also, despite share losses from competitor J.C.Penney (NYSE: JCP), KSS does not seem to be benefitting. Although the stock is not expensive, trading at 5.2x our F12E EBITDA (vs. the dept store grp at ~6x), the next data point is likely to be uninspiring (May sales expected to be relatively weak), and we believe they will be challenged to improve the quality of their brand portfolio. We model comps 0-2% and op margin of 10.7% in F12 (down 80bps)."
For an analyst ratings summary and ratings history on Kohl's click here. For more ratings news on Kohl's click here.
Shares of Kohl's closed at $48.66 yesterday, with a 52 week range of $42.14-$57.39.
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Analyst, Paul Lejuez, said, "The company is making changes to its pricing and promotional strategy, lowering price points and trying to make the value msg more clear in its advertising. In the early days, sales have been weak and it is tough to tell how much is due to lack of inventory. Mgmt expects May comps to be below 0-1% guidance for 2Q. There is no change to our F12E of $4.60 (vs. guidance of $4.75 and cons of $4.73)."
"While the company has done a good job of managing expenses, the top line remains slow to improve. Also, despite share losses from competitor J.C.Penney (NYSE: JCP), KSS does not seem to be benefitting. Although the stock is not expensive, trading at 5.2x our F12E EBITDA (vs. the dept store grp at ~6x), the next data point is likely to be uninspiring (May sales expected to be relatively weak), and we believe they will be challenged to improve the quality of their brand portfolio. We model comps 0-2% and op margin of 10.7% in F12 (down 80bps)."
For an analyst ratings summary and ratings history on Kohl's click here. For more ratings news on Kohl's click here.
Shares of Kohl's closed at $48.66 yesterday, with a 52 week range of $42.14-$57.39.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
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