Board Disruption Sends Kohl's Shares Soaring. What Should Investors Know?
Though Kohl's (NYSE: KSS) has fared pretty well in the course of the coronavirus pandemic, its performance was surprisingly sluggish leading up to it. In the fiscal year that ended in early 2020 (before the coronavirus outbreak began), the company's net sales landed at $18.9 billion, which is roughly where they were eight years earlier -- not exactly progress.
It's for this and other reasons that a group of Kohl’s shareholders is pushing back in the face of lackluster performance. The group, which comprises Macellum Advisors, Ancora Holdings, Legion Partners Asset Management, and 4010 Capital, has nominated nine directors for a place on the Kohl's 12-person board of directors. The firms advocating for change insist that too few of Kohl's existing directors have the retail experience needed to move Kohl's in a more profitable direction.
Following the announcement, Kohl's shares rose 9% on February 22. But while a new board could spell good news for Kohl's, it could also be good news for real estate investors.
Positive changes on the horizon?
The shareholders attempting to change things up for Kohl's …
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