Why Kohl's (KSS) Stock Is Down Over 30% This Week

Kohl’s Corp KSS shares are trading lower by 33% to $8.08 since Monday’s open after the company reported a 9.4% decline in fourth-quarter net sales. The company expects 2025 comparable sales to decrease 4-6%.

What To Know: Kohl's Corp shares tumbled in premarket trading after the retailer reported a 9.4% decline in fourth-quarter FY24 sales to $5.175 billion, though it slightly exceeded Wall Street estimates of $5.145 billion. Comparable sales fell 6.7%, while operating income dropped sharply to $126 million from $299 million in the prior year.

Despite a 49-basis-point expansion in gross margin to 32.9%, the company's operating margin compressed to 2.3%. However, adjusted earnings per share of 95 cents beat analyst expectations of 73 cents.

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What Else: Kohl's also announced a steep reduction in its quarterly dividend, cutting it from 50 cents per share to 12.5 cents. The company ended the quarter with $134 million in cash and $2.9 billion in inventory, a 2% increase year-over-year.

Looking ahead, Kohl's provided a disappointing FY25 outlook, forecasting a 5%-7% sales decline and EPS between 10 cents and 60 cents, well below the Street's expectation of $1.25.

Analysts remain cautious about the company's turnaround strategy, citing ongoing challenges in stabilizing the business amid an uncertain macroeconomic environment.

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How To Buy KSS Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Kohl’s case, it is in the Consumer Discretionary sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

According to data from Benzinga Pro, KSS has a 52-week high of $29.60 and a 52-week low of $8.05.