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Kohl’s Set for Recovery or More Slump?

Bryce TuoheyAvatar
Written by Bryce Tuohey Reviewed by Matt Monaco Fact-checked by Bryce Tuohey
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The challenges facing Kohl’s Corporation have intensified as their CEO departs amid leadership transition rumors, leading to heightened investor anxiety. On Wednesday, Kohl’s Corporation’s stocks have been trading down by -7.65 percent.

Stock Shift: Where Does Kohl’s Stand?

  • Financial reports from Kohl’s showcased less than stellar performance. Their most recent Q4 showed reduced net and comparable sales, alongside a drop in earnings per share. A worrying forecast hints at continued sales decline next year.
  • Analysts at JPMorgan have downgraded Kohl’s stock price to $9, saying their recovery would take some time. This comes after a massive decline in stock value due to missed earnings forecasts and reduced dividends.
  • The most dramatic news is a 20% stock plunge after Kohl’s reported a significant decrease in earnings expectations and a reduced dividend. A tough hit, setting the stock price down to $9.65.
  • Same-store sales for Q1 may emerge at the lower end of projected values, as shared by Kohl’s. This cautious projection aligns with the fiscal expectations laid out in their recent earnings call.

Candlestick Chart

Live Update At 11:38:54 EST: On Wednesday, March 12, 2025 Kohl’s Corporation stock [NYSE: KSS] is trending down by -7.65%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

A Snapshot of Kohl’s Financial Outlook

Kohl’s faces a complicated landscape. The company reported a significant decrease in its fiscal Q4 earnings, presenting a daunting challenge ahead. Simplifying vast numbers, let’s break down their financial scene. The company registered revenue at approximately $17.47B, pointing to gaps when compared to analyst expectations. Also, their earnings per share have slipped, impacting the morale of traders, suggesting a need to re-examine financial priorities.

More Breaking News

Reported numbers detail an operating cash flow of negative $195M with free cash flow plummeting to a deficit of $323M. These figures reflect broader trends in revenue declines spanning years, especially with a notable revenue drop of 4.18% over three years. Their total debt has reached a hefty $3.973B, juxtaposed against their cash reserves of $174M—a staggering disparity, raising eyebrows among market pundits. As millionaire penny stock trader and teacher Tim Sykes says, “Small gains add up over time; focus on building wealth gradually, not chasing jackpots.” This insight could serve as a crucial reminder for Kohl’s traders, highlighting the importance of patience and long-term growth, particularly in this challenging financial environment.

Broader Impact and Potential Future

The stock world’s perspective turned colder, with Kohl’s feeling intense scrutiny, as the stock value nosedived by a daunting 20%. As with many retailers that face harsh market realities, they projected an even more modest earnings outlook, complicating their path to recovery. Analysts have weighed in with apprehension over Kohl’s performance viability, downgrading price targets amid concern that consumer sentiment may shift negatively.

In an unusual decision, Kohl’s withdrew its historically higher dividends, trimming them to 12.5 cents per share, reflecting a strategic move to retain cash and stabilize a shaky financial ship. Cutting dividends can dampen investor excitement, yet sometimes the road to recovery demands an immediate short-term sacrifice for long-term stability. It’s a decision that might ostracize dividend-dependent investors momentarily to ensure future growth sustainability.

Conclusion: Kohl’s Path Ahead

Kohl’s operational landscape embodies a narrative that combines resilience with urgent strategic change. Their greatly reduced profits paired against elevated debt and marketing challenges paint a vivid picture of urgency and the necessity to recalibrate. As millionaire penny stock trader and teacher Tim Sykes says, “It’s better to go home at zero than to go home in the red.” This perspective, emphasizing cautious yet strategic moves, insists on setting realistic expectations. The roadmap for Kohl’s may rely heavily on revitalizing their value proposition to consumers, embracing innovative sales strategies, and reinforcing trader trust. Only time will unravel whether the steps Kohl’s is taking today will translate into a successful resurgence tomorrow.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

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Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”