HomeInvesting NewsKohl's Shares Rose Today

Kohl’s Shares Rose Today

Published on

Kohl’s (NYSE:KSS)

Today, shares of clothing retailer Kohl’s (NYSE:KSS) were up as much as 9.4% at 10:49 a.m. ET. At 3:30 p.m. ET, it was still up nearly 5% at $29.80.

At 3:30 p.m. ET on Friday, all three major indices were down even though the market had opened higher on the back of a strong jobs report. However, the company benefited from an additional factor that pushed the stock price in the right direction.

What’s the Reason?

According to the Labor Department’s data released Friday morning, the economy added roughly 315,000 jobs, which was aligned with projections. Amid the day, Russia’s state-owned oil company Gazprom said it had stopped gas shipments into Germany via its Nord Stream 1 pipeline owing to equipment concerns, effectively erasing the earlier good news.

Even yet, the positive news for Kohl’s (NYSE:KSS) was not overshadowed on Friday when it was reported by many news outlets that Oak Street Real Estate Capital had made an offer to purchase $2 billion worth of the company’s stores, with the company leasing them back from the private equity group.

As reported, this transaction will take place just over a month after a sale to retail holding business Franchise Group fell through.

What’s Next?

Like many other stores this year, Kohl’s (NYSE:KSS) has felt inflation’s effects on its bottom line. As of September 2nd, the stock price had dropped by about 39% due to this news. The Federal Reserve hopes to rein in inflation by increasing interest rates, but this may have the unintended consequence of slowing the economy and reducing consumer spending on non-essential items.

It’s a solid short-term strategy for Kohl’s (NYSE:KSS) to monetize its real estate by striking a deal with Oak Street, but the company will still need to lease back the stores. We won’t know if the deal goes through, but if it does, it might increase liquidity and funds to invest in the company’s future growth.

While the near-term outlook isn’t great for Kohl’s (NYSE:KSS), the stock trades at a bargain 5 times earnings.


Featured Image: Megapixl © Sakkawokkie

Please See Disclaimer

Latest News

DWAC Stock Price Up as SPAC Switches to a PO Box at a UPS Location as Its New Address

DWAC stock price was trading at 17.52 as of 03:52 PM EDT - a...

Meta Stock Slides as Firm Tests New Account Switching, Facebook, and Instagram Navigation

Meta stock today traded at 137.37 as of 03:40 PM EDT on Sept 26 For...

The Cause of Monday’s Amazon Stock Rally

Amazon Stock (NASDAQ:AMZN) Amazon stock was up as much as 3.1% on Monday morning. The...

The Reason Why AMC Stock Is Falling Today

AMC Stock (NYSE:AMC) On Monday morning, news of the company's newly minted AMC Preferred Equity...

More like this

General Motors Stock Plummeted After Partnering With Lithion & Toledo to Boost EVS.

General Motors Stock (NYSE:GM) General Motors stock plunged after it announced that its investment arm,...

Verizon Stock Price Falls After Company Announces Aid for Puerto Rico Disaster Relief.

Verizon Stock (NYSE:VZ) Verizon stock declined after announcing it has pledged $100,000 to the American...

Alphabet Stock Rises as the Launch of New Pixel Smartphones and the Pixel Watch Are Anticipated Next Week

Alphabet stock was trading at $99.12 at 11:50 AM EDT Next week, Google (NASDAQ:GOOG) (NASDAQ:GOOGL)...

Raytheon Stock Plunged After It Said It Won a $160 Million Contract for a Dual-Band Radar.

Raytheon Stock (NYSE:RTX) Raytheon stock declined after the company announced that it had just won...

Jblu Stock up and Joins American Airlines to Defend Their Alliance in Court

JBLU stock was up, trading at 6.99 as of 10:21 AM EDT on Monday The...

Target Stock Falls as the Retailer Promised to Provide Excellent Holiday Savings and Values.

Target Stock (NYSE:TGT) To match the excitement of holiday customers, stores have started preparing for...