Kohl’s shares close lower on Thursday, retailer announces layoffs as part of restructuring program

Kohl’s Corp (KSS) said earlier this week that it would lay off 250 workers as part of business restructuring, after holiday season results disappointed.

The department store operator’s comparable sales shrank 0.2% year-on-year in November and December. As a result, the company now projects fiscal 2019 earnings per share near the “low end” of the $4.75 to $4.95 range, which it announced in November.

Kohl’s shares closed lower for the fourth time in the past ten trading sessions in New York on Thursday. The stock went down 1.59% ($0.72) to $44.64, after touching an intraday low at $44.27, or a price level not seen since February 11th ($43.65).

Shares of Kohl’s Corporation have retreated 12.38% so far in 2020 compared with a 4.43% gain for the benchmark index, S&P 500 (SPX).

In 2019, Kohl’s Corp’s stock went down 23.20%, thus, it again underperformed the S&P 500, which registered a 28.88% gain.

According to Jen Johnson, Kohl’s senior vice president of communications, the move will make it possible for the company to streamline communications and eliminate the overlap of management roles.

The representative also said that affected employees would receive severance packages and outplacement services. The move will not lead to the closure of any offices or stores, Johnson said.

Analyst stock price forecast and recommendation

According to CNN Money, the 17 analysts, offering 12-month forecasts regarding Kohl’s Corporation’s stock price, have a median target of $48.00, with a high estimate of $55.00 and a low estimate of $41.00. The median estimate represents a 7.53% upside compared to the closing price of $44.64 on February 13th.

The same media also reported that at least 14 out of 19 surveyed investment analysts had rated Kohl’s Corporation’s stock as “Hold”, while 1 – as “Buy”. On the other hand, 1 analyst had recommended selling the stock.