Jim Cramer Calls Kohl’s ‘Road Kill’

According to CNBC’s Jim Cramer, Kohl’s “is just roadkill.”

The Mad Money host said, “I’m speechless’ after ‘a terrible holiday season.'”

Kohls reported poor holiday sales figures and warned on outlook. According to Cramer, “They’re just trying to stay in the game.”

Cramer said on “Squawk on the Street.” “I’m speechless … I’m as quiet as the registers at Kohl’s.”

Kohl’s said same-store sales during November and December fell 0.2%. The retailer also lowered its full-year outlook and
will be reporting fourth quarter earnings on March 3rd.

The company now expects fiscal 2019 diluted earnings per share to be at the “low end” of a previously announced range of $4.75 to $4.95. In November, when it last reported quarterly earnings, the company cut its annual profit forecast to $4.75 to $4.95 per share from $5.15 to $5.45.

“We are managing the business with discipline and we expect to deliver on our earnings guidance for the full year,” CEO Michelle Gass said.

Shares of Kohl’s dropped almost 10% on Thursday. Over the past 12 months, Kohl’s stock fell more than 35%.

“That was … a terrible holiday season,” said Cramer.

Cramer said he was stunned that Kohl’s was unable to translate its high-profile partnership with Amazon into holiday success. Cramer was referring to Kohl’s accepting Amazon returns.

“It feels like people returned things to Amazon and then ran out of the store,” Cramer said.

Bank of America also downgraded Kohl’s shares to neutral from buy, with a price target of $50 per share. “We worry … Kohl’s will need to continue to spend and promote to attract and retain new customers,” BofA’s retail analysts said.

Disclaimer: We have no position in Kohl’s Corporation (NYSE: KSS) and have not been compensated for this article.