1. Kohl's forecasts fiscal 2025 sales declines of 5% to 7%. 2. Analysts expected only a 2% decline in sales for 2025. 3. Recent shares down 25%, marking lowest levels since the 1990s. 4. Fourth quarter profits missed estimates despite adjusted EPS topping expectations. 5. New CEO Ashley Buchanan is sharing plans for business turnaround.
Forecasts for declining sales and earnings significantly miss analysts' expectations, suggesting ongoing struggles for KSS. Historically, such poor guidance typically leads to sustained stock declines, as seen with other retailers facing comparable setbacks.
Given the significant sales and EPS reductions projected versus expectations, strong price reactions are likely. The change in leadership may offer hope but adds uncertainty amid alarming forecasts.
Immediate market reaction to Kohl's poor forecasts indicates a short-term impact. Similar cases, like JCPenney and Sears, showed quick adverse effects following disappointing outlooks, leading to rapid stock declines.