UPDATE: UBS Upgraded Kohl's on New Strategy

Binetti noted that UBS had concerns regarding Kohl's merchandise and inventory strategy since its initiation in April 2012. The analyst commented, "the company's new strategy is a much better, multifaceted strategy with clearly defined programs to target each of the major challenges of the business (compared to a rather blunt strategy last year to build inventories full of low-impact merchandise, assuming high inventories would drive traffic/transactions)."

The analyst further commented that "1) Re-Emphasizing National Brands vs Private Brands; 2) Driving Loyalty with Non-Credit Card Customers; and 3) Improving Penetration in Key Traffic Driver Categories (cosmetics, accessories)," will help drive a consistent SSS growth in FY14.