Investors Should Consider Scooping Up Kohl’s Right Now

Omni channel retail company Kohl’s (KSS) has grown its business significantly over the past few months, launching new collections and forging strategic partnerships. So, we think it is wise to bet on the stock now because it is trading at an attractive valuation considering its solid financials and immense growth potential.

Kohl’s Corporation is one of the top omni channel retailers. But its share price has dipped 11.1% since the company reported its fiscal first quarter (ended May 1, 2021) financial results on May 20. While the company’s top and bottom lines both grew in the quarter,  its share price decline is perhaps a consequence of investors’ speculation that its revenues may fall when government-stimulus-fueled demand trails off.  However, the stock has soared 145.9% over the past nine months to close yesterday’s trading session at $53.41.

KSS has grown its offline and online presence over the past few months, leveraging its industry-leading loyalty and charge card programs, convenient and accessible nationwide footprint, and an impressive digital presence.

Volta Industries, Inc. and KSS announced on April 29 that 100 Volta electric vehicle charging stations will be installed this year across 50 of KSS’ stores. The company’s partnership with Sephora and its forthcoming launch of several new brands this fall are also expected to boost its sales.

Here are the factors that we think could influence KSS’ performance in the coming months:

Launch of New Collections Along with Strategic Partnerships

KSS launched its new private-label athleisure line—FLX—in March. The launch was a significant step in the company’s plan to aggressively expand its market reach in the growing active and casual categories.

The company’s partnership with Amazon.com, Inc. (AMZN) has been profitable and has  helped bring  more than  2 million new customers into its stores in 2020. Sephora announced on April 27 that as part of its new omni partnership, more than 125 prestige beauty brands will be coming to Sephora at Kohl’s this August. Also in April, KSS  announced a new partnership to bring TOMMY HILFIGER men’s sportswear to more than 600 stores across the country, and an expanded assortment on Kohls.com this fall. These collaborations are expected to help expand the company’s market reach significantly.

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