Saks Appoints New CEO and Files for Bankruptcy with $1.75 Billion Debt
Written by Emily J. Thompson, Senior Investment Analyst
Source: stocktwits
- New CEO Appointment: Saks has appointed Geoffroy van Raemdonck as the new CEO effective immediately, succeeding Richard Baker, aiming to navigate the company through its current challenges.
- Bankruptcy Filing: Following its acquisition of Neiman Marcus, Saks has increased its debt to approximately $1.75 billion, and despite securing financing commitments, it faces a daunting market environment.
- Deteriorating Retail Landscape: The bankruptcy of Saks highlights the struggles of high-end department stores in recovering post-pandemic, as consumers shift towards cheaper private-label brands and low-cost e-commerce options, impacting Macy's and Kohl's as well.
- Market Reaction: The news of Saks' bankruptcy led to a nearly 6% drop in Kohl's shares and a 4% decline in Macy's, reflecting market pessimism regarding the future of the department store sector.
Analyst Views on KSS
Wall Street analysts forecast KSS stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for KSS is 12.66 USD with a low forecast of 4.50 USD and a high forecast of 19.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
1 Buy
6 Hold
6 Sell
Moderate Sell
Current: 20.480
Low
4.50
Averages
12.66
High
19.00
Current: 20.480
Low
4.50
Averages
12.66
High
19.00
About KSS
Kohl's Corporation is an omnichannel retailer. The Company operates approximately 1,100 stores and a Website www.Kohls.com. The Company’s Kohl's stores and Website sell private and national brand apparel, footwear, accessories, beauty, and home products. The Company’s Kohl's stores generally carry a consistent merchandise assortment with some differences attributable to local preferences, store size, and Sephora at Kohl's shop-in-shops (Sephora shops). Its Website includes merchandise, which is available in the Company’s stores, as well as merchandise that is available only online. Its merchandise mix includes both national brands and private brands that are available only at Kohl's. Its private portfolio includes established brands such as Apt. 9, Croft & Barrow, Jumping Beans, SO, Sonoma Goods for Life, and Tek Gear, and nationally recognized brands such as LC Lauren Conrad, Nine West, and Simply Vera Vera Wang.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
