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Kohls Article

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Reviewer Name: Scott Goss

Article Title: Coming Back to Kohl’s

Article Author: Lawrence C. Strauss

Article Publication Date: Saturday, October 26, 2013

Article Source: Barron’s

URL: http://online.barrons.com/article/SB50001424053111904897104579149563981361616.html?mod=BOL_da_popemail#articleTabs_article%3D1

Article Summary (200 – 300 words):

The article “Coming Back to Kohl’s” describes how strong efforts from management could lead to a 20% rise over the next year for the company’s shares. Management has taken steps in improving inventory levels and merchandising. Improvements in the form of merchandise assortment, private-label programs, and e-commerce are expected to create modest revenue growth and higher pretax margins. Recent management decisions have been made to support the possible 20% rise beginning with the retailer’s shareholder-friendly capital-allocation policies. As of 2010, management has reduced market capitalization by 30%, buying back nearly $4.6 billion worth of shares. Currently, the stock yields 2.6% and in 2011 issued dividends which have grown steadily to $1.40 a share. Misjudging demand has been a problem for Kohl’s since the beginning. Management has put an emphasis on solving this issue and has already seen signs of success. In the August quarter alone results have shown a 6% rise in inventories.

In May, there was an announcement made that the company would be hiring Michelle Gass, a former Starbucks executive who has already proven she knows how to bring in new business. She was named Kohl’s first-ever chief customer officer, in charge of marketing, e-commerce, and customer service. Gass plans to focus on bringing savings and value to consumers. She plans to integrate e-commerce with the in-store shopping experience by increasing in-store ordering kiosks. The retailer plans to launch in-store delivery of

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