Breaking Down Kohl's Corporation (KSS) Financial Health: Key Insights for Investors

Breaking Down Kohl's Corporation (KSS) Financial Health: Key Insights for Investors

US | Consumer Cyclical | Department Stores | NYSE

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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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