It seems like you’re referencing recent news about Kohl’s, likely tied to its stock performance and the company’s response to a challenging retail environment. Based on the information available and the context of your statement, here’s a breakdown:
Kohl’s stock has indeed experienced a significant tumble, with reports indicating a drop of around 15-17% in premarket trading on March 11, 2025—coinciding with the current date you provided. This decline follows the release of a weak outlook for fiscal year 2025, where Kohl’s forecasted a steeper-than-expected decline in sales. Specifically, the company projected net sales to fall by 5% to 7% and comparable sales to decrease by 4% to 6%, alongside an earnings per share (EPS) range of $0.10 to $0.60—well below what analysts had anticipated (around $1.26 EPS and a less severe sales drop of about 2%).
The sales slide aligns with broader trends Kohl’s has faced, including a reported 9.4% drop in sales for the last quarter of fiscal 2024. This continues a pattern of declining performance, with the retailer struggling to maintain its footing amid competition from discount chains like Walmart and TJ Maxx, as well as shifting consumer preferences driven by inflation and economic uncertainty. The company also announced a drastic 75% cut to its dividend (from $0.50 to $0.125 per quarter), signaling financial strain and a focus on preserving cash.
In response, Kohl’s leadership is taking action. The outgoing CEO, Tom Kingsbury, who stepped down in January 2025 after less than two years, had previously emphasized “aggressive action” to reverse sales declines—efforts that included expanding Sephora shop-in-shops, introducing Babies “R” Us sections, and adjusting inventory strategies. However, these moves failed to stem the tide, with core categories like apparel and footwear continuing to underperform. The new CEO, Ashley Buchanan, who took over in January 2025, now faces intense pressure to engineer a turnaround. While specific actions under Buchanan are not yet fully detailed as of March 11, 2025, the company has acknowledged its disappointing performance and signaled a conservative approach to the year ahead, citing a competitive holiday season and broader economic challenges.
In short, Kohl’s stock is tumbling due to a bleak sales outlook and persistent declines, but the retailer, under new leadership, is actively working to address these issues—though the effectiveness of these efforts remains uncertain given the tough retail landscape. Does this capture what you were looking for, or did you have a specific angle in mind?
