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.
|Headquarters||Menomonee Falls, Wis.|
|CEO Michelle Gass’ Salary||$1.25 million base pay|
|What Kohl’s Is Worth|
|Share Price, 52-Week Range||$28.40-$64.80|
|GOBankingRates’ Evaluation of Kohl’s Net Worth||$6.77B|
|Information on 52-week range is accurate as of Nov. 18, 2021.|
Kohl’s Market Cap: $8.828B
Investors use market capitalization, or market cap for short, to gauge a company’s worth, and the market cap is really just the value of all the company’s stock combined. Kohl’s current market cap is $8.828 billion based on a share price of $58.54.
Kohl’s Net Worth: $6.77B
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 on concrete figures.
Based on Kohl’s revenue and profits from the last three years and its assets and debts, Kohl’s is worth $6.77 billion.
Past and Present Challenges
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.
In the year or two prior to the pandemic, Kohl’s responded to reduced customer traffic by trimming its inventory and taking advantage of back-to-school shopping trends. Department stores continued to navigate the disruptive aspect of online shopping, but Kohl’s strategy of maximizing prime inventory appeared to help its share prices.
Then COVID-19 hit, forcing temporary store closures and putting 85,000 Kohl’s employees on furlough.
It goes without saying that the pandemic dealt Kohl’s a major blow in 2020, driving net sales down 20.4% compared to 2019. The retailer finished the year $163 million in the red following a staggering 124% decline in profits from the 12 months prior. But with consumers returning to stores and their pre-pandemic shopping habits, things are looking up for Kohl’s heading into the final quarter of 2021.
Kohl’s net sales and earnings exceeded expectations in the third quarter, prompting the retailer to raise its full-year outlook for 2021. Net sales were up 15.5% and comparable sales increased 14.7%. Earnings per share reached a record $1.65. The company is also flush with cash, reporting a $1.9 billion cash pile even after repurchasing $506 million worth of stock. It plans to repurchase an additional $1.3 billion in shares before the year ends, which could have a positive impact on share prices.
Kohl’s History and Investors
Kohl’s founder Max Kohl, started a grocery store chain in 1946, and in 1962 established the first Kohl’s department store in Brookfield, Wis., 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.
Kohl’s went public in 1992. The company launched Kohls.com in 2001. It operates more than 1,100 stores in 49 states and has its own retail credit card.
Kohl’s shareholders primarily include large financially focused companies such as Vanguard, Blackrock Inc. and T. Rowe Price, which are its largest shareholders. JPMorgan Chase also holds millions of shares.
Daria Uhlig contributed to the reporting for this article.
Data is accurate as of Nov. 18, 2021, and subject to change.
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.