Kohl's Is a Dumpster Fire Wrapped Inside a Shitshow
Kohl's is a Dumpster Fire Wrapped Inside of a Shitshow
The Kohl's fight continues to escalate. It started as rumblings about spinning off eCommerce. Now it's about burning it down.
A few updates:
Macallum Advisors issued a new memo to the public and fellow shareholders to put pressure on the Company to completely change the composition of the the Board. Then plan is simple (according to them):
1 - Add experienced retail oversight to the Board.
2 - So that they can fire the weak CEO and management team.
3 - So that the company can be transformed.
What do they want to do specifically?
A - Admit the past mistakes.
There is talk of another lost year where Kohl's is not even comping the right peer set and is underperforming the market with no discernable plan.
- Help company find a consumer value proposition (CVP)
Short for "We don't even know what the point of Kohl's is anymore".
- More nimble merchandising
Whatever this means. Hard to define without a CVP.
- More efficient sourcing
(don't outsource to agents, do it yourself)
Imagine a chef wasn't in touch with their ingredients, that is what they are alleging here.
- Breakout eCommerce performance in Financials
This is a hidden gem in the report. The split hasn't been forgotten, it's just been buried here. Essentially "is there anything of value here at all." Probably this will be the first number to be reported.
A quick reminder:
- Activist investors usually get what they want.
Money quote:
"Motion is not action. Flailing from one failed or poorly executed initiative to another is subterfuge. The Company’s shareholders lost another year of what could have been material progress in the underlying business. Not again. More change is needed in the boardroom if Kohl’s is to achieve its full potential."
Continue to watch this space.
