Morningstar Rating

Stock Research and Analysis

by Paul Swinand

Bulls Say

Kohl's has room to expand into new and existing markets, including the Northeast, if real estate can be found.
Kohl's superior retail experience gives both private and national brands a better presentation that consumers prefer.
The off-the-mall format distinguishes Kohl's from the rest of the department store industry, which is dominated by mall-based stores that consumers have found less convenient in recent years. Read more 

Bears Say

Kohl's has expanded at an aggressive pace and new stores may dilute productivity of the chain. This is evidenced by the slowdown in openings as same-store sales have been weak.
Some traditional department stores and discounters have copied elements of the firm's strategy, while increasing promotions in an effort to regain lost market share. The increased competition is now pressuring Kohl's revenue and margins.
As discounters and midtier stores invest in private- and exclusive-label businesses, Kohl's offerings will seem less unique. Read more 

Management

Kevin Mansell became CEO in August 2008, replacing R. Lawrence Montgomery, who had served in that role since 1999. We think this was part of a natural succession plan; former president Mansell started working at Kohl's in the 1980s along with Montgomery.  Read more 

Profile

Kohl's operated approximately 1,160 department stores across the United States as of the second quarter of 2014. Stores target middle-income and value-focused customers   Read more 

Surprise: Earnings Turn Out Better Than Expected 
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