$KSS Q2 Earnings Report

$KSS Short

Recently due to inflation and supply chain shortages, all retail stocks have had a loss. First, it was Walmart, which missed the revenue and had to also lower its profit expectations for the rest of the year. This caused the stock to go down around 15%. Next up was Target. Their report was so bad that it also caused other retailers who haven’t come out with a report yet to go down such as Kohls by going down 10%. Target has been a huge winner throughout the pandemic however, it’s hard to deny that problems such as inflation, supply chain constraints, and higher labor and transport costs are avoidable by any retailer. One thing that has me worried is the fact that Kohl’s has beaten every estimate since 2020, however, I don't think that's gonna be a big issue since I'm also expecting them to lower their estimates for the future quarters which will cause people to short the stock. On top of everything, last quarter they included in their report that their selling and general administrative expenses are expected to go higher this year due to the opening of 400 Sephora stores and related store refresh costs. In addition to that, now they also have to fight inflation and high supply prices along with a low supply of stocks.

Cons: They beat estimates almost all of the time Now that the retailers much bigger than them have missed revenue the market’s expectations for them could be much less

Market sentiment: Only Reddit Employees complaining about the high number of customers trying to get senior citizen discounts while they are not eligible for it at all

Exchange NYSE Sector Consumer Services Industry Department/Specialty Retail Stores 1 Year Target $60.00 Today's High/Low $45.28/$43.10 Share Volume 2,562,231 Average Volume 9,523,090 Previous Close $48.47 52 Week High/Low $64.80/$43.67 Market Cap 5,587,277,082 Ceo: Time: Before market open Estimate: -15% Initial reaction: Long Researched reaction: Short