KSS Latest Report

Financial Analysis of Kohl's (KSS) in February 2025

Key Financial Data

1. Kohl's total operating revenue was $5.397 billion, mainly from retail operations.

2. Operating costs were $4.737 billion, with gross profit of $1.924 billion, resulting in a gross margin of approximately 35.66%.

3. Marketing and management expenses were $1.722 billion, with net cash provided by operating activities of $648 million.

4. Kohl's second-quarter revenue in fiscal 2025 was $3.732 billion, a 4.21% decrease from the same period last year.

Industry Comparison

1. Industry-wide analysis: The retail industry faces opportunities for consumer recovery in 2025, especially after the pandemic, as consumer demand for offline shopping increases, potentially driving overall revenue growth. Meanwhile, industry competition intensifies, requiring companies to continuously optimize their supply chains and enhance customer experience.

2. Peer evaluation analysis: Kohl's total operating revenue is in the middle to upper range of its peers. Although facing revenue decline, if it can maintain a high gross margin and good cash flow, its future growth potential remains promising.

Summary

Kohl's shows a certain operating strength in its current revenue and gross margin levels, despite facing revenue decline challenges. The overall market recovery and consumer confidence enhancement may support its future growth, but in the context of intensified competition, the company needs to strengthen its market strategy and product appeal.

Opportunities

1. Market recovery: With the improvement of the economic environment, consumer spending may increase, driving revenue growth.

2. Marketing strategy adjustment: Expand the customer base through promotional activities targeting high-income groups and middle-class families.

3. Optimized product mix: Focusing on the sales of family-oriented goods may enhance customer loyalty.

Risks

1. Revenue decline trend: The decline in revenue in fiscal 2025 may affect the company's overall profitability.

2. Intensified competition: Especially in the high-end market, Kohl's may face more competitive pressures.

3. Fluctuating consumer confidence: Although the current market sentiment is good, factors such as inflation may affect consumer purchasing power.