KSS: Adding Kohl's Corporation to Investing Ideas (Short Side)

04/27/18 03:55PM EDT

Below is a brief note from CEO Keith McCullough on why we're adding Kohl's Corporation (KSS) to the short side of Investing Ideas today:

"Our Retail analyst Brian McGough has been The Bear on Kohl's (KSS) for a long time now. The most recent quarter validated his concerns."

Here's an excerpt from his Institutional Research note:

"Management guidance looks aggressive, compares get tougher, and confidence is based on the fourth time in 13 years KSS comp matched aggregate US Retail Sales. Michele Gass has a high hurdle in 2018 – a very high one. And yet the market thinks KSS can push $6 in EPS. Even after taxes, I think $5 will be a push (ie below the guide). KSS is setting itself up to miss this year – a meaningful one. Still one of the best shorts in retail, even after the recent sell-off."

© 2024 Hedgeye Risk Management, LLC. The information contained herein is the property of Hedgeye, which reserves all rights thereto. Redistribution of any part of this information is prohibited without the express written consent of Hedgeye. Hedgeye is not responsible for any errors in or omissions to this information, or for any consequences that may result from the use of this information.