Kohl’s department stores present shoppers with tons of home-focused products like furniture, clothes and linens. Betrothed couples and new parents can also take advantage of its registry services. Although the store appears to offer the same services as many other big retailers, it remains competitive. The following breakdown can help investors understand Kohl’s market presence and whether to invest in a large company.
|What Kohl’s Is Worth|
|Kohl’s Share Price, 52-Week Range||$35.27-$78.85|
|Kohl’s Market Cap, 52-Week Range||$5.9B-$13.3B|
|GOBankingRates’ Evaluation of
Kohl’s Net Worth
|All information on 52-week range accurate as of June 8, 2018.|
|Headquarters||Menomonee Falls, Wis.|
|CEO Michelle Gass’ Salary||$1,224,932 base pay|
Kohl’s Market Cap Range: $5.9B-$13.3B
Investors use market capitalization, or market cap for short, to gauge a company’s worth, and the market cap is really just all the company’s stock combined. Kohl’s market cap has ranged between just under $6 billion to over $13 billion from June 2017 to early June 2018. Its shares trended upward in January 2018 after a rough patch of shaky share prices in 2015.
Kohl’s Net Worth: $18.4B
Market cap gives investors and prospectors an idea of a company’s worth, but with a caveat: Market prices change day to day, which means a bad trading day could throw off the company’s valuation.
The GOBankingRates Evaluation of a company’s net worth, however, considers factors like profit and revenue. The resulting value is more conservative but based off of concrete figures.
Based on Kohl’s revenue and profits from the last three years, Kohl’s is worth $18.4 billion.
Kohl’s Is Trying to Stay Agile in Response to Online Competition
The early 2000s saw Kohl’s greatly expand its physical footprint from 76 stores in the Midwest in 1992 to an additional 28 stores in California alone in 2003, plus more in the Northwest and South in the years that followed. Kohl’s hasn’t been immune to competition from online retailers, however. The company’s then-CEO, Kevin Mansell, acknowledged planned store closures in 2016, according to CNBC.
Kohl’s has responded to reduced customer traffic by trimming its inventory and taking advantage of back-to-school shopping trends. Department stores continue to navigate the disruptive aspect of online shopping, but for now, the Kohl’s strategy of maximizing prime inventory appears to be helping its share prices. Furthermore, Kohl’s CEO Michelle Gass, who took over in May 2018, might provide other strategies for the company to capitalize on, as she entered during a profitable sales period.
Kohl’s History and Investors
Kohl’s founder, Max Kohl, started a grocery store chain in 1946 and then established the first Kohl’s department store in Brookfield, Wis., in 1962, a short distance away from today’s Kohl’s headquarters in Menomonee Falls, Wis. Max Kohl’s son Herb helped run the family business, becoming its president in 1970, until BATUS Inc., the U.S. division of British American Tobacco, took complete control of the company in 1978.
Eventually, Kohl’s went public in 1992. The company launched Kohls.com in 2001. It operates more than 1,100 stores in 49 states and even has its own retail credit card.
Kohl’s shareholders primarily include large financially focused companies such as investment group BlackRock Inc. Big banks like JPMorgan Chase and Wells Fargo also hold millions of shares with the company.
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Methodology: The GOBankingRates Evaluation assesses a company’s net worth based on the company’s total assets, total liabilities, and revenue and net income from the last three years. Base value is established by subtracting total liabilities from total assets from the company’s last full fiscal year. Income value is established by taking the average of the revenue from the last three full fiscal years, plus 10 times the average of the net profits from the last three full fiscal years, and then calculating the average of those two figures. The final GOBankingRates Evaluation number is the sum of the base value and the income value.