Why Kohl's Stock Is Sinking Today

Kohl's Corp KSS shares are trading sharply lower Friday after the company announced it's terminating talks with Franchise Group over a potential sale.

Kohl's board unanimously determined to conclude its strategic review process amid a retail environment that has deteriorated since talks began.

"After engaging with more than 25 parties in an exhaustive process, FRG emerged as the top bidder and we entered into exclusive negotiations and facilitated further due diligence. Despite a concerted effort on both sides, the current financing and retail environment created significant obstacles to reaching an acceptable and fully executable agreement," said Peter Boneparth, chair of Kohl's board.

Kohl's said it will continue to explore further opportunities in the near and long term. The board is also currently reviewing other opportunities to unlock shareholder value, including reevaluating monetization opportunities for portions of the company's real estate portfolio.

Kohl's also provided a second-quarter update. 

"As inflationary pressures on the consumer continue, the Company is seeing a softening in consumer spending," Kohl's said.

As a result, the company now expects second-quarter revenue to be down "high-single digits."

See Also: Why Nio Stock Is Rising Today

KSS Price Action: Kohl's has traded between $64.37 and $34.33 over a 52-week period.

The stock was down 19.3% at $28.81 at press time, according to data from Benzinga Pro.

Photo: courtesy of Kohl's.

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