olddumper
Nov 12, 12:43 PM
$KSS Bull case is getting interesting.
Charles Grom at Gordon Haskett recently upgraded Kohl's to Buy with a
$27 price target.
The turnaround thesis:
Rebuilding private-label brands, which fell from 55% to 31% of sales.
Private-label recovery could drive meaningful gross margin expansion.
Inventory mistakes are being corrected, restoring merchandise availability.
Existing customers are showing signs of returning, with Kohl's Charge customer comps turning positive in Q2.
Kohl's could benefit as consumers trade down to more affordable retailers.
The interesting part is that this doesn't require Kohl's to become a growth powerhouse. Just getting back to operating like a competent retailer could produce a meaningful earnings recovery.
The market is pricing in a pretty bleak future. What happens if management actually executes?
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