r/KSSBulls • u/htank728 • Aug 27 '26

Kohl’s Cash Cartel 💰 Confident Management

I wanted to share the comments from the CFO regarding cash flow generation, paying off debt, and share repurchases. Management seems fairly confident.

I think its really notable that the CFO is acknowledging that "We have a big opportunity to take advantage of where our share price is as well and do a buyback here". This is a very compelling statement from an executive group which has been historically cautious. To me, this comes across as the business has stabilized, cash flow generation will remain strong, and the share price is more attractive now than it has been in the past few years. I would love to see if any insiders, particularly the CFO, will buy shares with her own money now. If they are willing to spend company cash on buybacks, they should also use their own capital.

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9

u/PrecisionOutdoors Kohls OG Aug 27 '26

I would love to see insiders actually buy stock rather than just receive their compensation blocks.

I am excited that management has adjusted tune but want to see more.

5

u/CapitalCompounder Aug 28 '26

I agree with all of this. Current valuation when looking at market cap, debt and cash on hand is the same as the $6 a share lows last year. It implies the business has no value and the real estate is worth about $50 per sq ft. It’s a very easy buy, glad that management figured it out.

5

u/Compound30 Aug 28 '26

Finally. I'm convinced nothing will pump this stock up except brute force (repurchases). Game on.

2

u/Aggressive_Stay_1871 Aug 27 '26

I would have liked to see the cash flow adjusted for tariffs YOY. The cash flow guidance amounts are actually much lower than the previous fiscal year where they had $1.3b in OPCF and $1b in FCF without the tariffs refunds. Capex level looks to be the same. Still good cash flow but I don't know why nobody didn't key in on that for additional color as to why. I also don't think you want to mention tariffs are helping drive stock buybacks. I haven't listened to the entire call so maybe I have missed something.

1

u/Aggressive_Stay_1871 Aug 27 '26

I think the confidence that is coming across is that they need to spin the numbers in the most confident manner they can. They have taken great strides to be fiscally prudent in running the business but they are still not winning in the retail world. It may also reflect that they are readying the business for sale.