Takeaway: Time to go Big or go Home and answer the questions that mgmt lacks the process to even ask. Questions will be answered in Black Book at 2pm.

It’s game time for KSS. Expectations across retail are largely below where business is trending. Call it the weather, call it a strong economy (both are solid) – I don’t care what it’s labeled. I call it a recipe for junk retailers to beat, and Kohl’s is absolutely the (McGough-professed) ‘king of over-earning junk-tail’. There are junkier names, but none are over-earning by $4-$5per share when earnings expectations are calling for $3.50 in perpetuity.

KSS is trading within two bucks of the 2017 high and short interest is sitting at 22% of the float – an all-time high. Keep in mind that 47% of JCP’s float is short (RH is about 130%), and JCP lost 80% of its equity value AFTER short interest pushed above 20% of the float. I guess my point (actually, it’s no guess – it IS my point) is that this is a fundamental call right now – arguably more so than at any other point this economic cycle.

Yes, that means it’s Black Book time. We’re going deep(er) on the critical fundamental factors – many of which need to break RIGHT NOW in order for this short to play out before year-end.  Like her or not, Michelle Gass (new CEO) is a change agent – for better or worse – and my goal is to answer and quantify the key issues better than her Strat Planners and Finance team can. We’re at the ‘go big or go home’ line with this KSS call. And by the looks of the research and the numbers, we’re not going home.

Call Details:
Time: Monday, October 30th at 2PM EDT
Toll Free:
Toll:
UK: 0
Confirmation Number: 13672748
Live Video Link: CLICK HERE