Citi: Kohls Enters Into Share Repurchase Agreement

Kohls KSS announced that it has entered into a $1.0B accelerated share repurchase (ASR) agreement. On 11/10/10, KSS announced its intention to enter into an ASR within the next several weeks. KSS will receive an initial delivery of 12.6M shares, and the company raised its 4Q10 EPS guidance by $0.05 per share to $1.56 to $1.64 to reflect this initial repurchase amount. We expect the company to repurchase 17.0M shares over the course of the quarter, and over time, Citi believes KSS' ability to generate significant cash flow could easily support annual share buybacks and a dividend program. Citi reiterates its Buy rating and $72 target price. KSS is trading higher at $53.72