Largest financial crisis since the great depression,dead housing market,six consecutive months of US job losses,high energy and food prices and KSS is at a 52 week high?
One final comment from me. Seems funny how only months ago our gov't felt it necessary to issue a $300billion handout to stimulate the economy under dire economic circumstances. That stimulation didn't seem to show up to any great extent on retailer's books. Circumstances remain unchanged. Yet, as you point out, KSS is not flirting with a 52-week high. Doesn't seem rational to me.
Perhaps this is part of the explanation as to why KSS and its sector are surging upward: Investors want to be in the market and retail stocks don't seem to stink as badly as many of the other sectors. Based on sales statistics they are treading water (haven't drowned, anyway). Actually, KSS's 5.6% YOY sales for Aug. aren't that bad compared to many other sectors.
I don't get it, either. Market seems to think Kohls is all about inventory management to juice margins as SSS YOY sales decreased 5.8% in August (between 50% and 300% outside of their 2-4% anticpated drop range). Granted they said August would be slow, I am not sure how they plan to recoup in the second half of the year.
KSS is also opening new stores as if the economy were booming. This rapid growth strategy--under circumstances as you outlined--seems reckless to me.
Obviously this upward price swing is as much sector driven as store specific.