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Activist investors comment on Kohl's Q4 earnings

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Kohl’s activist investor group calls for immediate change to its board. Yahoo Finance's Brian Sozzi shares the detail.

Video Transcript

[MUSIC PLAYING]

MYLES UDLAND: All right. Welcome back to Yahoo Finance Live on this jobs day morning. Brian Sozzi, tremendous animation. Let's talk a bit about your upcoming interview we got with HPE's CEO in just a bit here.

BRIAN SOZZI: Yeah. I'm looking forward to talking to HPE's CEO Antonio Neri on the state of that company and their reported earnings this week. The stock has been doing pretty well. I'm also watching shares of Kohl's here right now.

A new letter dropped by the activist investor team that is really has been slamming Kohl's over the past few weeks, and with good reason. And I've covered enough of these activist campaigns to realize the letter that came out today from this activist group is a ratcheting up in their attack on the board of directors over Kohl's. They're known here: the board-- quote, "The board seems to be content performing just slightly better than the worst companies in retail." And that is just not a good thing you want to hear if you're a Kohl's management team.

The letter goes on to note on a host of concerns following Kohl's earnings last week, which to me seem as though Kohl's management is continuing to live in an absolutely another planet, another realm of reality. But this note is pointing out 2021 guides is highly disappointing. The company bring back a dividend enough. Their operating margin is not going to come back potentially as fast as management expects.

So this thing, ratcheting it up. But I think for more details here, they have created a website, www.GreatValueAtKohls.com. I would head there for a little more detail on that. But again, this campaign is now starting to get cranked up a gear. I should also note Kohl's spokeswoman Julia Fennelly did not return my request for comment on this letter.

MYLES UDLAND: I guess that's the next leg of alpha that's out there. You can see which websites create value at company x.com have been purchased. Who's snapping up those URLs and then you know where you'll find your next activist battleground. All Right.