Sterne Agee Maintains Buy On Kohl's While Reflecting On 2010 And Looking Forward Through 2011

Sterne Agee has published a research report on Kohl's Corporation KSS after the company hosted management meetings to recap highlights from 2010 and opportunities for 2011.

In the report, Sterne Agee writes "SSS guidance of 2-4% is predicated upon growth in transactions, so a lasting inflection in ticket could provide a lift. Hot weather markets remain a significant focus of the organization as productivity remains meaningfully below company average ($220 psf). Contemporary brand offerings, fine-tuning size offerings, some product localization and a powerful private label launch (JLo and Mark Anthony) will all help improve productivity in these markets. Ecommerce (~4% of sales) is expected to grow ~50% due to kiosk installations, improving front-end technology, secular growth and proliferating SKUs. The freshness of stores, where 50% of stores have either been remodeled or built in the past five years, remains a distinct competitive advantage in a space characterized by aging assets and CapEx underinvestment."

Sterne Agee maintains its Buy rating and $62 price target.

Kohl's Corporation closed yesterday at $52.70.