By Kuldip K. Ambastha
On the trading day of Thursday, May 20, 2021, the stock of Kohl’s Corporation (KSS) had a -10.2% loss. Kohl’s Corporation, a prominent American department store retail chain, beat its 1Q2021 consensus estimates in terms of key metrics such as revenues, sales, and earnings. However, the stock price still saw a significant decline due to skepticism from Wall Street research analysts. Despite the strong 1Q2021 results, Kohl’s Corporation management only raised its full fiscal year performance forecast slightly. Full year sales growth of about 26% would be needed for Kohl’s Corporation to be able to match the sales figure seen in fiscal year 2019. This is a high hurdle for management to be able to potentially surpass.
Kohl’s Corporation management was cautious and conservative in updating the company’s performance forecast figures, perhaps due to several factors such as the potential end of government stimulus programs, problems with the supply chain, and increases in inventory levels being held in anticipation of consumers shopping more as coronavirus pandemic lockdowns are eased worldwide. It remains to be seen what the stock of Kohl’s Corporation will do going forward in terms of overcoming Wall Street skepticism.
Keywords – Kohl’s Corporation, Kohl’s Corp., Kohl’s, KSS, American, department store, retail chain, 1Q2021, revenues, sales, earnings, stock price, management, forecast, COVID-19, coronavirus, pandemic, lockdowns, public health, Wall Street, research analysts, skepticism, skeptic, cautious, conservative.
Disclosure – The principals and clients of Ambastha Financial LLC have no positions in KSS.
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