A lawsuit was filed on behalf of investors in Kohl’s Corporation (NYSE:KSS) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 09/20/2022 -- An investor, who purchased shares of Kohl's Corporation (NYSE: KSS), filed a lawsuit over alleged Securities Laws violations by Kohl's Corporation in connection with certain allegedly false and misleading statements.
Investors who purchased shares of Kohl's Corporation (NYSE: KSS) have certain options and for certain investors are short and strict deadlines running. Deadline: November 1, 2022. NYSE: KSS investors should contact the Shareholders Foundation at email@example.com or call +1(858) 779 - 1554.
Menomonee Falls, WI based Kohl's Corporation operates as a retail company in the U.S. The Company offers branded apparel, footwear, accessories, beauty, and home products through its stores and website.
In October 2020, Kohl's Corporation announced that it had entered into a new strategic framework to "drive top-line growth," "expand operating margin," and become "the most trusted retailer of choice for the active and casual lifestyle" (the "Strategic Plan"). Specifically, the Strategic Plan featured "new initiatives to position the company for long-term success," including "be[ing] the destination for active, casual and beauty for the entire family from the most trusted brands, always delivering quality and discovery," "lead[ing] with loyalty and value through a best-in-class rewards program," and "offer[ing] a differentiated omnichannel experience that is easy and inviting, no matter how customers want to shop." In addition, Kohl's announced that the Company was "focused on increasing profitability with a goal of expanding its operating margin to 7% to 8%." In announcing the Strategic Plan, Kohl's Corporation said its purportedly strong foundation of customers, industry-leading loyalty and charge card programs, high volume of stores, and large and growing digital business.
On May 19, 2022, Kohl's Corporation announced the Company's fiscal Q1 2022 results, reporting, among other items, a net sales figure expected to grow up to only 1% (compared to Wall Street consensus growth of 1.94%), earnings per share of $0.11 (missing estimates by $0.59), a revenue figure which only barely edged expectations, and the Company's decision to cut its full year earnings forecast. These results were at odds with the Defendants' representations regarding the successful execution of the Company's Strategic Plan, which was purportedly poised to drive top-line growth and position the Company for long-term success. Further, the announcement quoted Kohl's Chief Executive Officer Defendant Michelle Gass, who stated, in relevant part, "[t]he year has started out below our expectations. Following a strong start to the quarter with positive low-single digits comps through late March, sales considerably weakened in April as we encountered macro headwinds related to lapping last year's stimulus and an inflationary consumer environment."
Then, on May 20, 2022, Macellum Advisors GP, LLC ("Macellum"), "a long-term holder of nearly 5% of the outstanding common shares of Kohl's", issued a statement addressing "[t]his quarter's extremely disappointing results," which Macellum attributed to a "flawed strategic plan and an inability to execute." Macellum also stated that "the current Board appears to have withheld material information from shareholders about the state of Kohl's in the lead-up to this year's pivotal annual meeting," which "suggests to us a clear breach of fiduciary duty."
Shares of Kohl's Corporation (NYSE: KSS) declined from $63.74 per share on March 17, 2022, to as low as $26.32 per share on July 26, 2022.
Tthe plaintiff claims that between October 20, 2020 and May 19, 2022, the Defendants made false and/or misleading statements and/or failed to disclose that Kohl's Strategic Plan was not well tailored to achieving the Company's stated goals, that the Defendants had likewise overstated the Company's success in executing its Strategic Plan, that Kohl's had deficient disclosure controls and procedures, internal control over financial reporting, and corporate governance mechanisms, that as a result, the Company's Board was able to and did withhold material information from shareholders about the state of Kohl's in the lead-up to the Company's annual meeting, that all the foregoing, once revealed, was likely to have a material negative impact on Kohl's financial condition and reputation, and that as a result, the Company's public statements were materially false and misleading at all relevant times.
Those who purchased shares of Kohl's Corporation (NYSE: KSS) have certain options and should contact the Shareholders Foundation.
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