Kohl's Corporation (KSS): History, Ownership, Mission, How It Works & Makes Money

Ever wondered how a simple grocery store evolved into a nationwide department store chain? From its humble beginnings in 1927 to a **$15.4 billion** revenue-generating retail giant in fiscal year 2024, the story of Kohl's Corporation is one of strategic evolution and adaptation. Join us as we delve into the rich history, ownership structure, core mission, operational mechanics, and revenue streams that define this iconic retailer, and discover how it has managed to take care of families' realest moments for over 60 years.

Kohl's Corporation (KSS) History

Kohl's Founding Timeline

Year established

The company was established in 1962.

Original location

The first store was located in Brookfield, Wisconsin.

Founding team members

It was founded by the Kohl family, a Polish immigrant family.

Initial capital/funding

The initial capital came from the Kohl family's wholesale business, which had been operating since 1927.

Kohl's Evolution Milestones

Kohl's Transformative Moments

• Acquisition by British American Tobacco (1972): This event provided substantial financial backing, enabling the company to expand its retail footprint and experiment with new merchandising strategies.
• Management Buyout (1986): The return to local management control allowed for a more focused approach to the company's operations and strategic planning, leading to a revitalization of the brand.
• Initial Public Offering (1992): Going public not only raised significant capital but also increased the company's visibility and credibility, paving the way for accelerated growth.
• Partnership with Amazon (2017): This innovative collaboration allowed customers to return Amazon purchases at the company's stores, driving foot traffic and enhancing the company's role as a convenient shopping destination.

These moments reflect strategic shifts in ownership, operational control, and market positioning that have collectively shaped the company into the retail entity it is today. Delve deeper into the company's investor profile: Exploring Kohl's Corporation (KSS) Investor Profile: Who’s Buying and Why?

Kohl's Corporation (KSS) Ownership Structure

Kohl's Corporation operates as a publicly traded company, meaning its ownership is distributed among shareholders who can buy and sell shares on the open market. The company's governance is structured to represent the interests of these shareholders, with a board of directors overseeing management and strategic direction.

Kohl's Current Status

Kohl's Corporation is a public company, trading on the New York Stock Exchange (NYSE) under the ticker symbol KSS. As a public entity, it is subject to regulatory oversight by the Securities and Exchange Commission (SEC) and is required to disclose financial and operational information to the public.

Kohl's Ownership Breakdown

Understanding the ownership structure of Kohl's provides insights into who has influence over the company's decisions. Here's a breakdown of the ownership as of the latest available data:

For more in-depth insights into Kohl's financial performance, see: Breaking Down Kohl's Corporation (KSS) Financial Health: Key Insights for Investors

Kohl's Leadership

The leadership team is responsible for the day-to-day operations and strategic direction of Kohl's. Key figures include:

• Thomas A. Kingsbury: Chief Executive Officer and Director
• Jill Timm: Chief Financial Officer
• Christie Raymond: Chief Marketing Officer

These individuals, along with other members of the executive team, guide Kohl's in navigating the competitive retail landscape and achieving its business objectives. The Board of Directors provides oversight and guidance to the management team.

Kohl's Corporation (KSS) Mission and Values

Kohl's aims to inspire families to live fulfilled lives, reflecting a commitment to value, convenience, and community. The company's core values emphasize customer satisfaction, integrity, teamwork, and a passion for excellence.

Kohl's Core Purpose

Official mission statement

Kohl's official mission statement is: 'To inspire and empower families to lead fulfilled lives.' This statement reflects the company's focus on providing value and inspiration to its customers, positioning itself as more than just a retailer but as a partner in their customers' lifestyles. For more in-depth information, check out Mission Statement, Vision, & Core Values of Kohl's Corporation (KSS).

Vision statement

Kohl's vision is to be the most trusted retailer in America. This overarching goal is supported by several key strategies:

• Exceptional Customer Service: Striving to exceed customer expectations with every interaction.
• Personalized Shopping Experience: Offering tailored products and services that resonate with individual customer preferences.
• Community Engagement: Building strong relationships with local communities through charitable initiatives and partnerships.
• Operational Excellence: Ensuring efficient and effective operations across all areas of the business.

Company slogan/tagline

Kohl's has used various slogans and taglines throughout its history to communicate its brand promise. Recent examples include:

• 'Expect Great Things': This tagline emphasizes the company's commitment to quality, value, and customer satisfaction.
• Previous slogans have focused on value and savings, such as 'That's more like it!', highlighting the affordability and appeal of shopping at Kohl's.

Kohl's Corporation (KSS) How It Works

Kohl's operates department stores that offer apparel, footwear, accessories, beauty, and home products, with a focus on providing value to families through its private and national brands.

Kohl's Product/Service Portfolio

Kohl's Operational Framework

Kohl's focuses on delivering value through a combination of strategic initiatives and operational efficiencies:

• Merchandise Assortment: Kohl's offers a mix of private and national brands, tailoring its assortment to meet customer preferences and demand.
• Omnichannel Experience: Kohl's integrates its physical stores with its online platform to provide customers with a seamless shopping experience. This includes online ordering with in-store pickup, ship-from-store capabilities, and digital marketing initiatives.
• Loyalty and Rewards Programs: Kohl's Rewards and Kohl's Card programs incentivize repeat purchases and foster customer loyalty through points, discounts, and exclusive offers.
• Partnerships: Kohl's strategically partners with other brands, such as Sephora, to enhance its product offerings and attract new customers.
• Supply Chain Management: Kohl's manages its supply chain to ensure efficient inventory flow, minimize costs, and meet customer demand.

More insights about the corporation's financial standing can be found at Breaking Down Kohl's Corporation (KSS) Financial Health: Key Insights for Investors.

Kohl's Strategic Advantages

Kohl's maintains its competitive edge through several key advantages:

• Established Brand Recognition: Kohl's has built a strong brand reputation over the years, recognized for its value proposition and customer-friendly shopping environment.
• Loyalty Programs: Kohl's Rewards and Kohl's Card programs drive customer retention and repeat purchases by offering exclusive benefits and incentives.
• Strategic Partnerships: Collaborations with popular brands like Sephora enhance Kohl's product offerings and attract new customers.
• Real Estate Portfolio: Kohl's has a substantial real estate portfolio, with stores located in convenient locations across the United States.
• Omnichannel Capabilities: Kohl's integrated online and offline channels provide customers with a seamless shopping experience, catering to their preferences and needs.

Kohl's Corporation (KSS) How It Makes Money

Kohl's primarily generates revenue through the sale of apparel, footwear, accessories, beauty, and home products in its department stores and online.

Kohl's Revenue Breakdown

Kohl's Business Economics

Kohl's business economics are influenced by several key factors:

• Pricing Strategy: Kohl's employs a promotional pricing strategy, offering frequent discounts, coupons, and Kohl's Cash to attract customers. This approach drives volume but can impact profit margins.
• Cost of Goods Sold (COGS): Managing the cost of goods is crucial. Kohl's sources products from various vendors, and fluctuations in raw material costs, manufacturing expenses, and supply chain logistics affect profitability.
• Operating Expenses: These include expenses related to running stores (rent, utilities, salaries), marketing, and administrative functions. Efficient cost management in these areas is essential for maintaining profitability.
• Inventory Management: Effective inventory management is vital to avoid markdowns and stockouts. Kohl's aims to optimize inventory levels to meet customer demand without holding excess stock.
• Competition: The retail landscape is competitive. Kohl's competes with department stores, online retailers, and specialty stores, necessitating continuous adaptation and differentiation.

To delve deeper into the company's guiding principles, explore: Mission Statement, Vision, & Core Values of Kohl's Corporation (KSS).

Kohl's Financial Performance

Kohl's financial performance can be assessed through the following metrics:

• Revenue: In the fiscal year 2024, Kohl's reported total revenues of $16.6 billion, a 3.4% decrease compared to the previous year.
• Gross Margin: Kohl's gross margin for fiscal year 2024 was 36.0%.
• Operating Income: The company's operating income for fiscal year 2024 was $357 million.
• Net Income: Kohl's reported a net income of $202 million for fiscal year 2024.
• Earnings per Share (EPS): For fiscal year 2024, Kohl's diluted earnings per share was $1.75.
• Cash Flow: Kohl's generated $833 million in cash flow from operations in fiscal year 2024.

Kohl's Corporation (KSS) Market Position & Future Outlook

The company is navigating a transforming retail landscape, focusing on strategic initiatives to enhance customer engagement and drive sales growth; its future success hinges on adapting to changing consumer preferences and effectively executing its long-term strategies. To gain more insights into the company's investor base, check out: Exploring Kohl's Corporation (KSS) Investor Profile: Who’s Buying and Why?

Competitive Landscape

Opportunities & Challenges

Industry Position

The company holds a significant position in the department store sector, characterized by:

• A focus on value-driven shopping experiences.
• A strategic emphasis on private and exclusive brands.
• A widespread store network across the United States.

To maintain and strengthen its industry standing, the company is focusing on:

• Improving customer loyalty through enhanced rewards programs.
• Optimizing its store footprint and investing in high-performing locations.
• Adapting to evolving consumer trends and preferences in fashion and home goods.