Kohl’s Corporation (KSS): A Bull Case Theory

We came crossed a bullish thesis on Kohl’s Corporation on r/ValueInvesting’s Substack. In this article, we volition summarize the bulls’ thesis on KSS. Kohl’s Corporation's share was trading astatine $18.50 as of February 6th. KSS’s trailing and forward P/E were 10.69 and 17.89 respectively according to Yahoo Finance.

Kohl's Corporation operates arsenic an omnichannel retailer successful the United States. Kohl’s latest net merchandise reinforces the presumption that the turnaround is gaining traction and that the banal remains profoundly mispriced. The institution is connected way to make $1.3 cardinal successful operating currency travel and $900 cardinal successful escaped currency travel this year, yet adjacent aft the caller rally its marketplace capitalization sits astatine conscionable $2.5 billion, leaving it trading astatine a important discount to tangible publication value. Revenue declines person continued to moderate, and the anticipation is that maturation could instrumentality arsenic soon arsenic adjacent 4th for the archetypal clip since the pandemic.

Despite this improving trajectory, the marketplace inactive prices Kohl’s arsenic if bankruptcy hazard is imminent, portion a much tenable valuation based connected existent and guardant escaped currency travel suggests just worth successful the $40–$60 range. Operationally, Kohl’s benefits from a differentiated footprint arsenic the lone nationwide section store chiefly located successful portion malls alternatively than declining enclosed malls, facing constricted nonstop contention successful galore tiny and mid-sized markets.

The Sephora shop-in-shop acts arsenic a traffic-driving anchor, helping physique a retail flywheel arsenic absorption reinvests successful antecedently neglected categories. A renewed absorption connected private-label brands, high-margin impulse checkout areas akin to TJ Maxx, and expanded seasonal merchandising has supported nett betterment adjacent amid falling sales.

As gross stabilizes, borderline leverage could thrust important net upside. Over a multi-year horizon, a re-rating toward adjacent price-to-book multiples could enactment a semipermanent bull lawsuit targeting $150 per share.

Previously, we covered a bullish thesis on Kohl’s Corporation (KSS) by Hugo Navarro successful March 2025, which highlighted the turnaround nether CEO Ashley Buchanan, beardown escaped currency travel generation, manageable debt, and undervalued existent property assets. KSS's banal terms has appreciated by astir 107% since our coverage. The writer of this shares a similar view but emphasizes connected accelerating currency flow, moderating gross declines, and aggregate enlargement driving a imaginable re-rating.