Kohl's (NYSE:KSS) is considering going private as the retailer struggles to increase its share price, even as sales have rebounded.
Kohl's embarked on a turnaround plan less than two years ago, but is apparently considering more drastic measures including breaking the company up or selling to private equity, reported The Wall Street Journal.
The Wisconsin-based retailer has seen its share prices fall 37 percent in the past year and is priced today at the same level as in 2012. This, in spite of a year and a half turnaround effort that has already yielded four quarters of same-store sales growth.
The retailer has revamped its e-commerce platform, refocused on national brands, overhauled beauty departments and refocused on its loyalty program. The new Kohl's mobile wallet tied to its loyalty program is already seeing heavy use and generating lots of customer data.
And there's a new IT initiative in place to make use of that data.
Kohl's also has plans to open an off-price outlet called Off Aisle and will be opening smaller format stores.
But these are similar initiatives to most of Kohl's department store competitors, all of which are struggling. Macy's in particular is under pressure by investors, not to go private but to monetize its best assets: its real estate.
Kohl's has not commented on the report, but there is a call with analysts and media scheduled for Wednesday afternoon.
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