Kohls Corp Stock Price, News & Analysis

Kohl's Corporation (NYSE: KSS) has responded to Macellum Advisors' recent director nominations, asserting that their claims are unfounded and detrimental. The Board, largely independent, has formed a Finance Committee to explore value-enhancing opportunities. Kohl's reports strong performance, achieving a nine-year high operating margin in Q3 and record earnings per share, positioning for significant profitability. The company is expanding its Sephora partnership, with expectations for a substantial sales lift. The Board is committed to maximizing shareholder value and will present its recommendations at the 2022 Annual Meeting.

Macellum Advisors holds nearly 5% of Kohl's (KSS) and criticized the company's Board for swiftly rejecting acquisition offers. Managing Partner Jonathan Duskin expressed concern over the Board's entrenched stance and lack of strategic thinking regarding potential buyers. Macellum accused the Board of adopting a shareholder rights plan that discourages active investor engagement and indicated intentions to nominate new Board candidates focused on maximizing shareholder value. Macellum's actions aim to facilitate a more open sales process.

Kohl's Corporation (NYSE: KSS) has determined that recent expressions of interest in acquiring the company do not reflect its true value based on future growth potential. The Board of Directors, advised by its Finance Committee and external financial advisors like Goldman Sachs, aims to maximize long-term shareholder value. Additionally, Kohl's has adopted a limited-duration shareholder rights plan to facilitate an orderly review of these offers. This plan will expire on February 2, 2023, and shareholders will receive rights for every share owned.

Macellum Advisors, a significant shareholder of Kohl’s (KSS), has criticized the company’s Board for dismissing its assessment of potential acquirers as 'unfounded speculation.' Following confirmed expressions of interest from Acacia Research and Sycamore Partners, Macellum urges the Board to establish a special committee to oversee a strategic review, inviting a Macellum representative to lead it. With Kohl’s stock price rising approximately 35% after the news, Macellum advocates for an organized sales process to maximize shareholder value, reserving the right to act against the Board if they hinder this process.

Kohl’s Corporation (NYSE: KSS) has confirmed receiving letters of interest for acquisition. The Board of Directors will evaluate these proposals to ensure alignment with shareholder interests. Shareholders are advised that no immediate action is required. The company will not comment further unless deemed necessary for shareholder benefit. Caution is advised regarding forward-looking statements, which involve risks and uncertainties that could affect actual results.

Kohl’s Corporation (NYSE:KSS) has seen positive results from its strategic plan, with a 16% increase in net sales in Q3 2021, exceeding expectations. The company reported an operating margin of 8.4%, the highest in nine years, and is on track to surpass its 2023 financial goals two years early. Recent brand partnerships, including 200 Sephora shops, are attracting new customers. Additionally, Kohl's plans to repurchase $1.3 billion in shares to enhance shareholder value. The board has been refreshed with three independent directors, bolstering its expertise.

Macellum Advisors has expressed concern regarding Kohl's Corporation's management and board's performance, highlighting a significant 22% decline in share price since April 2021. They suggest the board lacks urgency and calls for more retail expertise and shareholder representation to drive necessary improvements. Macellum believes Kohl's $7bn-$8bn in real estate could result in a share price of $100 with better management. Additionally, they propose considering strategic alternatives, including a potential sale, to enhance shareholder value.

Engine Capital LP urges Kohl's Corporation (NYSE: KSS) to conduct a strategic review, including the potential separation of its ecommerce and legacy retail businesses. The ecommerce arm is estimated to hold a valuation of at least $12.4 billion. Engine Capital believes the entire company could fetch a significant premium, possibly around $75 per share. Despite strong free cash flow of $1.7 billion, Kohl's has underperformed, with a total shareholder return of -10.5% since CEO Michelle Gass took charge in May 2018.

Kohl's (NYSE: KSS) announced its commitment to community support by granting over $8 million to more than 150 local nonprofits across the U.S. this holiday season. These grants, ranging from $10,000 to $100,000, were awarded to organizations focused on family health and wellness as part of Kohl's A Community with Heart program. Since its inception in 2018, Kohl's has contributed over $19 million to such causes, exemplifying its dedication to social responsibility.