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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