8
Apr
It was not a very good Friday for Kohl’s.
Standard & Poor’s downgraded the Menomonee Falls, Wisconsin-based Kohl’s Corp. to “BB” from “BB+” citing its weaker-than-expected fourth-quarter results, lower margins, heightened clearance activity and “muted” demand.
BB is taken into account a junk rating. It suggests an elevated vulnerability to default risk if there are significant changes within the business or the economy, though an organization maintains flexibility to satisfy financial commitments.
However it’s not all bad.
In its report on Kohl’s issued Friday, S&P said it expects higher metrics in 2023 as the corporate improves merchandising execution with lower inventory levels, freight costs ease and continues the rollout of Sephora shops inside its stores.
S&P also cited reduced capital expenditures, which...
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