Stifel Would Buy Kohl's (KSS) on Today's Sales Results/Guidance Update-Related Weakness
Stifel reaffirmed its Buy rating and $54 price target on Kohl’s Corporation (NYSE: KSS) following Q4 sales results and guidance update issued earlier Thursday.
Analyst Richard Jaffe noted that Kohl's comparable-store sales increase of 0.4 percent in Q4 came in below management's guidance and the firm's estimate of a 1.5 percent increase. This was due to a slow start to the quarter (warm weather) and a weaker than expected January. However, Holiday sales were strong from the week of Thanksgiving through Christmas. Management indicated that the soft demand for cold-weather goods led to lower store traffic,
the analyst said.
Jaffe would also be a buyer of Kohl's on weakness, saying, We remain optimistic longer term as we believe several of the company’s key initiatives will play out favorably. These include: 1) the loyalty program has been rolled out across the country 2) 900 beauty departments have been upgraded; and 3) most importantly, the new marketing efforts and the new merchants will likely continue to have a significant impact.
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