Why Kohl's (KSS) Stock is Down Sharply Today

Shares of Kohl’s (NYSE: KSS) have plunged 7% today after the company introducing new long-term financial targets.

At its Investor Day, Kohl’s said it is looking to achieve low-single digits percent sales growth and mid-to-high single digits percent EPS growth. Moreover, the company is aiming to grow Sephora to a $2 billion business across more than 850 stores.

“Kohl's is undergoing a significant transformation of our business model and brand to be the retailer of choice for the Active and Casual lifestyle. We have fundamentally restructured our business to drive sustainable and profitable growth, while providing a strong return to shareholders,” said Michelle Gass, Kohl’s chief executive officer.

Kohl’s is also aiming to open 100 new stores in the next four years as it aims to “expand omnichannel capabilities with launch of self-serve buy online, pick up in store to all stores.”

The company also said it is enhancing Kohl's Card rewards benefit to 7.5% everyday.

“We have laid the foundation for our winning strategy and have started to implement key initiatives that will scale and accelerate our growth in the years ahead. We delivered record EPS in 2021 and achieved our operating margin goal two years ahead of schedule, reflecting our progress to drive more profitable growth,” Gass sadded.

Kohl’s stock is still up about 10% YTD.

By Senad Karaahmetovic | [email protected]

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