Kohl’s

Kohl’s said as national brands were raising prices, they could raise prices on top

Kohl’s CFO: “We do have a great pricing elasticity model. So we do leverage that to make our pricing decisions. So for things that are not elastic like decor, fashion kids, we’re going to be much more sensitive on price versus things that are inelastic — or elastic like small electrics, toys and basics.” “Jill Timm — Chief Financial Officer Sure. So first, in terms of the guidance with the pricing and promotion, obviously, value always has been a core tenet for Kohl’s. And so as we look at pricing, we always want to take a thoughtful and strategic approach to make sure that we’re serving our customer best. We do have a great pricing elasticity model. So we do leverage that to make our pricing decisions. So for things that are not elastic like decor, fashion kids, we’re going to be much more sensitive on price versus things that are inelastic — or elastic like small electrics, toys and basics.” (Kohl’s Q4 2021 Earnings Call, 3/1/2022)

Kohl’s CFO: “65% of our sales are national brands. So they’re really the ones who are driving pricing and allows us to maintain competitive pricing through the market at that point in time.” “Jill Timm — Chief Financial Officer: So that model works for us, and that’s how we’ll change those pricing. Remember, 65% of our sales are national brands. So they’re really the ones who are driving pricing and allows us to maintain competitive pricing through the market at that point in time. And then last, just given our model of being promotional and kind of high-low, it gives us a lot of flexibility to take price through less promotions in terms of what we’re on sale at. So if we’re on 40% last year, we could be at 35% this year, and it affords us the opportunity to take price that way with the customer still seeing a great value in that sale.” (Kohl’s Q4 2021 Earnings Call, 3/1/2022)

Kohl’s CEO: “there are certain national brands that are taking pricing. We, like others, will be in a competitive — same competitive environment as they take price. We’ll, of course, be taking that along with them, but we’ll stay close to it.” “Michelle Gass — Chief Executive Officer: So everything from your more aspirational brand products to your opening price point. So if you take denim as an example, which is a trending category, we have a very big denim business. We have Levi’s on one end, and we’ve got Sonoma jeans on the other and which is also great quality. So just making sure we can meet the customer where they are. As it relates to national brands, there are certain national brands that are taking pricing. We, like others, will be in a competitive — same competitive environment as they take price. We’ll, of course, be taking that along with them, but we’ll stay close to it.” (Kohl’s Q4 2021 Earnings Call, 3/1/2022)

Kohl’s reported shoveling over $900 million to shareholders as margins surged

November 2021: Kohl’s reported it had its highest third quarterly margin in nine years. “Operating margin of 8.4% in Q3 2021, the highest Q3 operating margin in 9 years” ([Kohl’s Q3 2021 Results Presentation, 11/18/2021)

 Kohl’s reported spending over $900 million on shareholders through buybacks and dividends through the first three quarters of 2021. “Repurchased $807M of shares, including 10M shares for $506M in Q3…Paid $114M in dividends to our shareholder.” (Kohl’s Q3 2021 Results Presentation, 11/18/2021)