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Jan. 18, 2022, 6:19 a.m. EST

Kohl's stock could be worth $100 a share if balance sheet optimized, activist investor Macellum says

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By Tomi Kilgore

Activist investor Macellum Advisors GP LLC said Kohl's Corp. /zigman2/quotes/210414114/composite KSS -2.51% leadership has been "materially mismanaging" the business, and plans to nominate a number of candidates for the board of directors unless the board addresses the long-term underperformance of the stock. Kohl's stock slipped 0.6% in premarket trading. Macellum, which owns nearly 5% of the shares outstanding, said it believes the stock could be valued at $100 per share, or more than double Friday's closing price of $47.77, if Kohl's were to make changes to improve operation execution and optimize its balance sheet, which could include selling some of its $7 billion-to-$8 billion worth of real estate assets. Macellum said if Kohl's is unwilling to make suggested changes, it should explore strategic alternatives, including a possible sale of the company. It has gained 9.6% over the past 12 months through Friday, while the SPDR S&P Retail ETF /zigman2/quotes/206947004/composite XRT -0.56% has rallied 16.2% and the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.21% has advanced 23.7%.

/zigman2/quotes/210414114/composite
US : U.S.: NYSE
$ 47.23
-1.22 -2.51%
Volume: 1.21M
May 16, 2022 2:20p
P/E Ratio
7.36
Dividend Yield
4.23%
Market Cap
$6.23 billion
Rev. per Employee
$196,293
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/zigman2/quotes/206947004/composite
US : U.S.: NYSE Arca
$ 67.34
-0.38 -0.56%
Volume: 3.06M
May 16, 2022 2:21p
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/zigman2/quotes/210599714/realtime
US : S&P US
4,032.35
+8.46 +0.21%
Volume: 1.34B
May 16, 2022 2:21p
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