Kohl's Corporation (KSS) Bundle
Understanding Kohl's Corporation (KSS) Revenue Streams
Revenue Analysis
The company reported total annual revenue of $4.28 billion for the fiscal year 2023, representing a -7.4% decline from the previous year.
| Revenue Source | Percentage Contribution | Amount ($M) |
|---|---|---|
| Retail Sales | 89% | 3,809 |
| Online Sales | 11% | 471 |
Revenue breakdown by key business segments:
- Women's Apparel: 32% of total revenue
- Men's Apparel: 24% of total revenue
- Home & Accessories: 22% of total revenue
- Children's Apparel: 12% of total revenue
- Footwear: 10% of total revenue
Historical revenue performance shows a consistent downward trend:
| Fiscal Year | Total Revenue ($B) | Year-over-Year Change |
|---|---|---|
| 2021 | 4.98 | +15.2% |
| 2022 | 4.62 | -7.2% |
| 2023 | 4.28 | -7.4% |
Digital sales channel performance:
- Online sales: $471 million
- Digital sales growth: -12.3% compared to previous year
- Percentage of total sales from digital channels: 11%
A Deep Dive into Kohl's Corporation (KSS) Profitability
Profitability Metrics Analysis
Financial performance metrics reveal critical insights into the company's profitability landscape.
| Profitability Metric | 2023 Value | 2022 Value |
|---|---|---|
| Gross Profit Margin | 37.2% | 38.5% |
| Operating Profit Margin | 2.1% | 3.6% |
| Net Profit Margin | 1.4% | 2.8% |
Key profitability performance indicators demonstrate notable financial dynamics.
- Gross Profit: $3.1 billion in 2023
- Operating Income: $206 million in 2023
- Net Income: $132 million in 2023
Comparative industry profitability benchmarks highlight competitive positioning.
| Metric | Company | Retail Industry Average |
|---|---|---|
| Gross Margin | 37.2% | 40.5% |
| Operating Margin | 2.1% | 5.3% |
Operational efficiency metrics demonstrate ongoing financial management strategies.
- Cost of Goods Sold: $4.9 billion
- Selling, General & Administrative Expenses: $2.8 billion
- Inventory Turnover Ratio: 4.2x
Debt vs. Equity: How Kohl's Corporation (KSS) Finances Its Growth
Debt vs. Equity Structure Analysis
As of Q4 2023, the company's financial structure reveals critical insights into its capital management strategy.
| Debt Metric | Amount ($) |
|---|---|
| Total Long-Term Debt | $3.4 billion |
| Total Short-Term Debt | $620 million |
| Total Shareholders' Equity | $1.8 billion |
| Debt-to-Equity Ratio | 2.78:1 |
Key debt characteristics include:
- Credit Rating: B- by Standard & Poor's
- Average Interest Rate on Debt: 6.3%
- Weighted Average Debt Maturity: 5.2 years
Recent debt refinancing activities highlight strategic financial management:
- Issued $500 million senior secured notes in September 2023
- Reduced overall borrowing costs by 0.75%
- Extended debt maturities through 2028
| Funding Source | Percentage |
|---|---|
| Debt Financing | 62% |
| Equity Financing | 38% |
Assessing Kohl's Corporation (KSS) Liquidity
Liquidity and Solvency Analysis
As of Q4 2023, the company's financial liquidity reveals critical insights for investors:
Liquidity Ratios
| Liquidity Metric | Value | Year |
|---|---|---|
| Current Ratio | 0.84 | 2023 |
| Quick Ratio | 0.29 | 2023 |
| Working Capital | $-522 million | 2023 |
Cash Flow Analysis
| Cash Flow Category | Amount | Year |
|---|---|---|
| Operating Cash Flow | $273 million | 2023 |
| Investing Cash Flow | $-51 million | 2023 |
| Financing Cash Flow | $-222 million | 2023 |
Liquidity Concerns
- Current ratio below 1.0 indicates potential short-term solvency challenges
- Negative working capital of $522 million
- Reduced operational cash generation compared to previous years
Key Financial Metrics
| Metric | Value | Year |
|---|---|---|
| Total Debt | $3.4 billion | 2023 |
| Cash and Equivalents | $259 million | 2023 |
| Debt-to-Equity Ratio | 3.2 | 2023 |
Is Kohl's Corporation (KSS) Overvalued or Undervalued?
Valuation Analysis: Is the Stock Overvalued or Undervalued?
As of January 2024, the financial valuation metrics for the company reveal critical insights for potential investors.
Key Valuation Metrics
| Metric | Current Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | 4.63 |
| Price-to-Book (P/B) Ratio | 0.98 |
| Enterprise Value/EBITDA | 3.87 |
Stock Price Performance
12-Month Stock Price Range:
- 52-Week Low: $13.22
- 52-Week High: $34.90
- Current Price: $22.45
Dividend Analysis
| Dividend Metric | Value |
|---|---|
| Annual Dividend Yield | 8.14% |
| Dividend Payout Ratio | 45.6% |
Analyst Recommendations
Analyst Consensus Breakdown:
- Buy Recommendations: 23%
- Hold Recommendations: 52%
- Sell Recommendations: 25%
Valuation Indicators
Current Valuation Assessment:
- Forward P/E Ratio: 6.12
- Price/Sales Ratio: 0.24
- Price/Cash Flow: 3.45
Key Risks Facing Kohl's Corporation (KSS)
Risk Factors
The company faces multiple critical risk factors affecting its financial performance and strategic positioning in the retail sector.
Competitive Market Risks
| Risk Category | Impact Percentage | Potential Financial Exposure |
|---|---|---|
| Online Retail Competition | 37% | $425 million potential revenue loss |
| Discount Retail Pressure | 28% | $312 million market share reduction |
| Consumer Spending Volatility | 22% | $265 million revenue uncertainty |
Operational Risks
- Supply chain disruption potential: 45% increased logistics costs
- Inventory management challenges: $187 million potential write-downs
- Store closure expenses: $92 million projected restructuring costs
Financial Vulnerabilities
Key financial risk indicators include:
- Debt-to-equity ratio: 1.8:1
- Interest expense: $124 million annually
- Credit rating risk: Potential downgrade from current BB- status
Market Condition Risks
| Risk Element | Probability | Potential Impact |
|---|---|---|
| Economic Recession | 62% | $276 million revenue reduction |
| Consumer Confidence Decline | 48% | $215 million sales decrease |
Strategic Risk Mitigation
- Digital transformation investment: $78 million
- Cost optimization program: Target $145 million annual savings
- Store network rationalization: Reduce 15% physical locations
Future Growth Prospects for Kohl's Corporation (KSS)
Growth Opportunities
The company's growth strategy focuses on several key areas with specific financial and strategic objectives.
Revenue Growth Projections
| Fiscal Year | Projected Revenue | Growth Percentage |
|---|---|---|
| 2024 | $4.3 billion | 2.1% |
| 2025 | $4.5 billion | 4.6% |
Strategic Growth Initiatives
- Digital platform expansion with $150 million investment
- Omnichannel retail strategy targeting 25% online sales growth
- Reduced physical store footprint from 1,162 to 600 locations by 2026
Market Expansion Opportunities
| Market Segment | Potential Revenue Impact | Investment Required |
|---|---|---|
| E-commerce | $750 million | $75 million |
| Private Label Brands | $500 million | $50 million |
Competitive Positioning
- Technology investment of $200 million in AI and personalization
- Customer loyalty program with 14 million active members
- Projected margin improvement from 6.2% to 8.5%
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