Kohl's (KSS) Gears Up for Upcoming Holiday Shopping Season
Kohl's Corporation KSS is strengthening its presence as the busy holiday season approaches. Keeping along these lines, the leading omnichannel retailer is kicking off its holiday savings with the Deal Dash event. The company will host a three-day event starting Oct 9 across more than Kohl’s 1,100 stores and online on Kohls.com.
Shoppers can avail incredible deals at the event across categories like kitchen appliances, toys, decor and luggage, among others. Kohl's will offer great deals on well-known national brands as well as only-at-Kohl's brands and products.
With its Kohl’s Rewards loyalty program, registered members can avail of additional offers during the season. Rewards members also earn 5% Kohl’s Rewards on each purchase as well as personalized deals and perks all around the year. In addition, Kohl's Card shoppers can take another 15%, 20% and 30% off during the 3-Day Dash Deal.
Kohl’s is leaving no stone unturned to enhance consumers’ experience through easy and convenient methods for holiday shopping. Management is providing easy store pick-up options like self-pick up across its stores. Shoppers can take advantage of free shipping with no minimum purchase value on Kohls.com.
Image Source: Zacks Investment Research
What Else Should You Know?
The Zacks Rank #3 (Hold) company is progressing toward its 2023 key priorities, including improving customer experience, simplifying value strategies, undertaking disciplined inventory and expenses management and solidifying the balance sheet. Focusing on these priorities will likely keep working well for Kohl’s.
The company's solid partnership with Sephora to create a new era of elevated Beauty at Kohl's is noteworthy and generating impressive results. Kohl’s is also focused on growing its store portfolio and accelerating digital business growth. Apart from this, the company is committed to driving growth with its loyalty programs, including Kohl's Cash, Kohl's Rewards and private-label credit cards.
However, Kohl’s is battling product cost inflation, which is marring its margins. During the second quarter of fiscal 2023, Kohl's gross margin contracted 61 basis points (bps) year over year to 39%. Increased SG&A costs continue to hamper its performance. SG&A expenses rose 208 bps to 33.5%, as a percentage of total revenues. Management expects fiscal third-quarter SG&A expenses to increase nearly 3%.
That said, a wide range of product portfolio along with Kohl’s great deals and shopping conveniences makes it an unmatched destination to shop, in stores and online through the holiday season and beyond.
KSS’s stock has dropped 26.1% year-to-date compared with the industry’s 25.1% decline.
Some Solid Pick
Here, we have highlighted three top-ranked stocks.
Dillard's, Inc. DDS, a department store retailer, currently sports a Zacks Rank #1 (Strong Buy). DDS has a trailing four-quarter negative earnings surprise of 77.1% on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Dillard's current financial-year sales and earnings per share (EPS) suggests a decline of almost 1% and 17.7%, respectively, from the year-ago reported figures.
Ross Stores ROST, an off-price retailer, currently sports a Zacks Rank #1. ROST has a trailing four-quarter earnings surprise of 11.4% on average.
The Zacks Consensus Estimate for Ross Stores’ current financial-year sales and EPS suggests growth of 7.1% and 19.4%, respectively, from the year-ago reported figures.
Build-A-Bear Workshop, Inc. BBW has a trailing four-quarter earnings surprise of 21.6%, on average. BBW, a multi-channel retailer of plush animals and related products, sports a Zacks Rank #1.
The Zacks Consensus Estimate for Build-A-Bear Workshop’s current financial-year sales and EPS suggests growth of 6.1% and 16.9%, respectively, from the year-ago reported figures.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Kohl's Corporation (KSS) : Free Stock Analysis Report
Dillard's, Inc. (DDS) : Free Stock Analysis Report
Ross Stores, Inc. (ROST) : Free Stock Analysis Report
Build-A-Bear Workshop, Inc. (BBW) : Free Stock Analysis Report
