Kohl’s shares increased by more than 8% as a group of investors announced that it had nominated nine directors to the board. However, the company said that it had rejected the bid, as it would disrupt its revamping momentum.
- The investor group also wanted to cut executive compensation, slash inventory levels, and possibly sell non-core real estate. The real estate sale is estimated to be $7-$8B in worth.
- Kohl’s revenue decreased by 25% in 2020 to $9.8B, and it reported a loss of $506M, compared to its profit of $426M in 2019. However, CNBC noted that the retailer performed better than some of its peers, including J.C. Penney (lost $1.3B in the first ten months of 2020) and Macy’s, whose profit reduced by half in 2020 to $564M.
- This year, the retailer launched new initiatives, including setting up an Amazon's return service in Kohl stores and opening Sephora beauty shops in 850 stores.
- The activist investor group includes Macellum Advisors, Ancora Holdings, and Legion Partners Asset Management. These investors together replaced five board of directors in Bed Bath and Beyond in 2019.