Kohl's Corporation (NYSE:KSS) shares tumbled to a 52-week low of $13.77, reflecting a challenging period for the retail sector. Trading at just 0.42 times book value and offering a substantial 13.93% dividend yield, the stock appears undervalued according to InvestingPro analysis. The company, known for its department stores across the United States, has faced significant headwinds in a retail environment marked by shifting consumer habits and intense online competition. This latest price level underscores the difficulties Kohl's has encountered, with the stock experiencing a stark 1-year change, plummeting by -44.6%. Thirteen analysts have revised their earnings downward, though the company maintains a 14-year streak of dividend payments. For deeper insights into Kohl's financial health and future prospects, InvestingPro subscribers can access 12 additional key insights and a comprehensive Pro Research Report.
In other recent news, Kohl's Corporation has experienced a series of notable developments. The company reported a significant drop in its third-quarter earnings per share to $0.20, alongside a 9.3% decline in same-store sales. Despite these challenges, Kohl's managed to increase its gross margin and saw a 15% rise in beauty sales through its partnership with Sephora. The company is also undergoing a CEO transition, with Ashley Buchanan set to take the helm in January 2025. Amid these developments, several analysts have adjusted their outlooks on Kohl's. TD Cowen reduced the price target but kept a Hold rating, while Telsey Advisory Group and Citi also reduced their price targets. Baird downgraded the stock from Outperform to Neutral, and Guggenheim maintained a Buy rating but lowered the price target. These adjustments come in response to Kohl's ongoing sales difficulties and operational challenges, despite the company's initiatives to revitalize sales.
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