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Kohl’s shares gain the most in three weeks on Tuesday, company to open 850 Sephora shops inside its own sites

Kohl’s Corp (KSS) said on Tuesday that it had inked a long-term strategic partnership with Sephora, under which 850 Sephora shops will be opened inside Kohl’s own sites by 2023.

Kohl’s shares closed higher for the sixth time in the past ten trading sessions in New York on Tuesday. It has also been the sharpest single-session gain since November 9th. The stock went up 13.42% ($4.32) to $36.52, after touching an intraday high at $37.27, or a price level not seen since March 4th ($37.77).

Shares of Kohl’s Corporation have retreated 28.32% so far in 2020 compared with a 13.36% gain for the benchmark index, S&P 500 (SPX).

In 2019, Kohl’s Corp’s stock went down 23.20%, thus, it again underperformed the S&P 500, which registered a 28.88% gain.

The Sephora shops are to replace Kohl’s current in-store beauty assortment, while their positioning at the front of the Kohl’s store is to ensure maximum exposure for Sephora’s brand partners.

“The Kohl’s and Sephora partnership will bring a transformational, elevated beauty experience to Kohl’s from the top global name in beauty,” Michelle Gass, Kohl’s CEO, said in a press release.

“This new collaboration is an excellent example of two customer-centric, purpose-driven companies leveraging each other’s strengths to make aspirational beauty far more accessible to millions of customers all across the country. Today’s announcement is a perfect illustration of the bold moves we are making at Kohl’s to accelerate our growth and reimagine our future for the next era of retail,” Gass added.

The first 200 Sephora shops are expected to be opened during the autumn next year.

Analyst stock price forecast and recommendation

According to CNN Money, the 16 analysts, offering 12-month forecasts regarding Kohl’s Corporation’s stock price, have a median target of $29.50, with a high estimate of $40.00 and a low estimate of $15.00. The median estimate represents a 19.22% downside compared to the closing price of $36.52 on December 1st.

The same media also reported that at least 11 out of 17 surveyed investment analysts had rated Kohl’s Corporation’s stock as “Hold”, while 2 – as “Buy”. On the other hand, other 2 analysts had recommended selling the stock.

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