Kohl’s Corporation (NYSE: KSS) updated its long-term financial targets this morning, only minutes ahead of its investor day. Here’s everything that CEO Michelle Gass is aiming for.
Key takeaways from Kohl’s new long-term financial forecast
Low-single digits percentage growth in sales.
Operating margin at 7.0% to 8.0%.
Earnings growth in the mid-to-high single digits percentage range.
Roughly $5.50 billion in operating cash flow and $2.50 billion in FCF through 2024.
850 Sephora locations to grow it into a $2.0 billion brand.
Millions of new customers on the back of its Amazon Returns programme.
Opening one hundred or more smaller stores through 2025.
Just over 33% growth in its digital business.
CEO Gass’ comments on the updated financial framework
Kohl’s has been under immense pressure lately from activist investors to consider selling itself to boost shareholder value. The fresh forecast comes only weeks after Kohl’s rejected a buyout offer for $64 a share, citing undervaluation. According to CEO Gass:
We have a lot of confidence in the transformation and it’s a strong, realistic growth plan. We’re evolving Kohl’s from a department store to a more focused lifestyle concept, centred around the active and casual lifestyle. This is unique and we can own this space. We’ve demonstrated that we have a strong agenda of growth drivers that’ll have a long tailwind ahead of us. One of the key advantages that Kohl’s has is that we do stand for value.
The update comes a week after Kohl’s posted its fiscal Q4 results that disappointed activist Macellum Advisors. Kohl’s shares are down 10% on Monday.
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