Nov. 26 at 5:11 PM
$KSS $DDS Kohl’s has a credible path to becoming the “next Dillard’s” if its turnaround continues. Recent earnings beat expectations, margins expanded, and management raised full-year guidance — early signs of a business stabilizing. Costs are being tightly controlled, and Kohl’s is pushing higher-margin categories like private labels, beauty, and home, similar to how Dillard’s leaned on merchandising discipline to drive long-term profitability. A new CEO provides strategic focus, and several valuation models suggest Kohl’s trades well below intrinsic value if free cash flow recovers.
The upside case is that continued margin gains + even modest sales stabilization could re-rate the stock significantly, just as Dillard’s did during its turnaround.
Still, risks remain: comps are weak, retail conditions are tough, and execution must be consistent. But if Kohl’s delivers 2–3 years of steady margin and cash-flow improvement, it has real potential to be a high-upside retail recovery play.
