KSS - Embedded Expectations Analysis - 2020 12 17
Kohl's Corporation (KSS:USA) currently trades at a historical high relative to UAFRS-based (Uniform) earnings, with a 39.2x Uniform P/E. At these levels, the market is pricing in expectations for profitability to stabilize near historical lows, but management is confident about their portfolio, servicing customers, and the holiday seasonSpecifically, management is confident in their ability to increase cash balances, keep customers safe, and adapt their marketing and merchandising strategy. In addition, they are confident their portfolio differentiates them from competitors and that they can sell back-to-school products year-round. Management is also confident they provide their customers with ease and convenience. Furthermore, they are confident they are prepared for the holiday season and that they can continue to keep SG&A costs low. Moreover, they are confident about the sustainability of elevated kitchen and cookware demand and that they can leverage their core disciplines to become more efficient
Kohl's operates department stores, a website (www.Kohls.com), FILA outlets, and Off-Aisle clearance centers. The company's Kohl's stores and website sell proprietary and national brand apparel, footwear, accessories, beauty and home products. The company's website includes merchandise that is available in its stores, as well as merchandise that is available only online. The company's portfolio includes private brands such as Apt. 9, Croft & Barrow, Jumping Beans, SO and Sonoma Goods for Life and exclusive brands that are developed and marketed through agreements with brands such as Food Network, LC Lauren Conrad, Elle and Simply Vera Vera Wang.
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