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Kohl's (KSS) Expands Self-Pickup Option Ahead of Holiday Season

Zacks Equity Research
·4 min read

Kohl's Corporation KSS is committed to strengthening its omnichannel presence as the busy holiday season approaches. Moving on these lines, the company now provides Kohl’s Self-Pickup service on eligible Kohls.com orders in over 1,100 stores nationwide to make holiday shopping hassle-free and efficient.

The service will aid customers in skipping the line and conveniently pick up eligible orders at a Kohl’s store. Orders will be ready to be collected within two hours and customers will receive a "Ready for Pickup" email directing them to the pickup area. The launch of Self-Pickup shows Kohl’s commitment to making customers’ shopping experience easier with technology. The move is in sync with the company’s objective of providing an industry-leading shopping experience.

Zacks Investment Research
Zacks Investment Research


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Apart from the Self-Pickup option, Kohl’s provides other shopping conveniences. Customers can use the Kohl’s App and Kohl’s Pay for on-the-go shopping. Shoppers can find the option to scan and store Kohl’s gift cards, Kohl’s Cash coupons and savings offers in the Kohl’s App. Kohl’s Pay helps customers with fast and easy payment by connecting to Kohl’s Card account to apply offers and coupons with a scan. All said, the company is continuously innovating and investing in more productive store experiences using technology to accelerate growth, as evident from the aforementioned roll-out of the Self-Pickup option.

Partnerships Boost Performance

The company has been benefiting from the rollout of Amazon’s AMZN Amazon returns program nationwide. Per this program, Kohl’s stores accept free, unpackaged and easy returns for customers of Amazon. The company is impressed with the performance of AMZN’s Amazon returns program. One of the prime objectives of this program is to convert more customers into loyal Kohl’s shoppers. Incidentally, the company has been benefiting from the rollout of its Amazon returns program nationwide

The company's solid partnership with Sephora to create a new era of elevated Beauty at Kohl's, is noteworthy and is generating impressive results. In its first-quarter earnings release, management remained encouraged about its updated stores (with Sephora at Kohl’s shops), generating positive comparable store sales (comps) in 200 of these locations. Management expects continued business growth in the second half as it gains from the roll-out of another 400 stores, more store investments and improved loyalty rewards.

Wrapping Up

In a recent strategic review release with Franchise Group, Kohl’s stated that it is witnessing soft consumer spending patterns owing to increased inflationary pressure. Consequently, management now anticipates second-quarter 2022 net sales decline in the high-single digits, compared with the low-single-digit decline projected earlier.

In addition, Kohl’s continues to witness a rise in SG&A expenses due to greater investments toward strategic initiatives. Management expects SG&A expenses to be high in the full year, wherein the gross margin is likely to contract due to product and freight cost inflation.

Shares of the Zacks Rank #5 (Strong Sell) company have slumped 34.1% in the past three months compared with the industry’s 26.4% decline.

2 Hot Retail Stocks

Here we have highlighted two better-ranked stocks, namely, Ulta Beauty ULTA and Dollar Tree DLTR.

Ulta Beauty, which operates as a retailer of beauty products, has a Zacks Rank #2. Ulta Beauty has a trailing four-quarter earnings surprise of 49.8%, on average. ULTA has an expected EPS growth rate of 10.7% for three-five years. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Ulta Beauty’s current financial-year sales suggests growth of 10.4% from the year-ago reported number.

Dollar Tree operates a discount variety of retail stores. The stock currently carries a Zacks Rank #2. DLTR has an expected EPS growth rate of 15.5% for three-five years.

The Zacks Consensus Estimate for Dollar Tree’s current financial year revenues and earnings per share (EPS) suggests growth of 6.7% and 40.5%, respectively, from the year-ago reported figure. DLTR has a trailing four-quarter earnings surprise of 13.1%, on average.


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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
 
Kohl's Corporation (KSS) : Free Stock Analysis Report
 
Dollar Tree, Inc. (DLTR) : Free Stock Analysis Report
 
Ulta Beauty Inc. (ULTA) : Free Stock Analysis Report
 
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