Jul. 11 at 6:53 PM
$KSS
Posted this as a reply but it is important to post here,
Kohls has gross margins of over 40%,
They cash flow like a monster & they don’t have debt that is expiring before interest rates will be lowered so they will definitely be able to refinance at lower rates
Additionally the real estate on the balance sheet is a huge factor but even from a going concern standpoint Kohls is undervalued,
Yes they had revenues contract but the fundamentals are still strong & with a tariff environment people may go back to shopping at more affordable places, especially those with kids!
I think shorts liked & attached the fact that revenues were consolidating & a bad year (15b of revenues instead of 16b) as a way to justify shorting it this far,
Truly they may have shorted it to
$5 (which they essentially did) & started buying at that point,
I think people have caught on before & the shorts are hoping Kohls earnings will continue to detonate but with new CEO it is interesting!
