Kohl's (KSS) Fuels Home Category With Strengthened Assortment
Kohl's Corporation KSS remains on track to augment its home category, which has been doing well for a while now. The company has announced its latest approach to home, aiming to offer customers an expanded range of stylish home and seasonal decorations at affordable prices.
This new strategy includes a significantly larger assortment of products, available both in stores and online, featuring a curated selection of home and seasonal items in new categories and styles. Kohl’s has been actively engaged in enhancing and diversifying its home products lineup over the past year and is pleased with the initial response to its home décor collection.
More on the New Home Collection
Kohl's has revamped its home assortment by expanding certain categories by 40%, introducing new products in areas like wall art, glassware, ceramic decor, barware and lighting, among others. In addition to maintaining popular programs like bedding and bath, Kohl's has updated its offerings to include more modern designs, frequent pattern and color updates and a continuous stream of stylish options to meet evolving customer preferences.
The company's home strategy also positions it as a destination for everyday and seasonal decor, with 60% of new products introduced seasonally to keep customers returning for fresh home updates with each holiday. Moving on, Kohl’s has improved its in-store and digital presentation, engaging in multi-channel marketing efforts like digital activations, collaborations with home design experts and a live pop-up experience in New York City, among other initiatives aimed at inspiring and engaging customers.
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What Else to Know?
Kohl's recently posted fourth-quarter fiscal 2023 results, with the bottom line increasing year over year and surpassing the Zacks Consensus Estimate. However, the top line fell from the year-ago quarter’s levels and missed the consensus mark. During the quarter, total revenues came in at $5,956 million, down from the prior-year quarter’s level of $6,019 million. Net sales dropped 1.1% year over year to $5,710 million. The Zacks Consensus Estimate for the top line was pegged at $5,969.5 million. Comparable sales decreased 4.3%.
Kohl’s expects net sales in the range of 1% growth to 1% decline in 2024. Comparable sales are anticipated to be flat to 2% growth. Earnings per share (EPS), excluding non-recurring charges, are envisioned in the band of $2.10-$2.70. The company delivered an EPS of $2.85 in 2023. Shares of this Zacks Rank #4 (Sell) company have tumbled 7.8% in the past three months against the industry’s growth of 5.7%.
However, the company’s focus on expansion, like the abovementioned home category, keeps it well-positioned for growth.
Solid Retail Picks
Here, we have highlighted three better-ranked stocks.
American Eagle Outfitters AEO, which operates as a specialty retailer, currently sports a Zacks Rank #1 (Strong Buy). AEO has a trailing four-quarter earnings surprise of 22.7%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for American Eagle’s current fiscal-year earnings and sales indicates growth of 3.3% and 7.9% from the year-ago reported number.
Abercrombie & Fitch ANF, a specialty retailer, currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Abercrombie & Fitch’s current fiscal-year earnings suggests growth of 3.2% from the year-ago reported numbers. ANF has a trailing four-quarter earnings surprise of around 715.6%, on average.
DICK'S Sporting Goods DKS holds a Zacks Rank #2 at present. DKS, which operates as a sporting goods retailer, delivered a positive earnings surprise of 16.8% in the last reported quarter.
The Zacks Consensus Estimate for DICK'S Sporting’s current fiscal-year sales and EPS suggests growth of 4.2% and 3.2%, respectively, from the year-ago reported figure.
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