Kohl's To Execute Its Strategic Plan On Standalone Basis; Ends Review Process

(RTTNews) - Kohl's Corp. (KSS) said its Board unanimously determined to conclude its strategic review process. In light of the current financing and retail environment, which has significantly deteriorated since the beginning of the process, the Board decided that it was no longer prudent to continue its process and that it is in the best interest of shareholders for management to continue to execute the company's strategic plan on a standalone basis.

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

The Board noted that it is currently reviewing other opportunities to unlock shareholder value, including reevaluating monetization opportunities for portions of its real estate portfolio. The Board reaffirmed its commitment to executing a $500 million Accelerated Share Repurchase program, to commence immediately following the second quarter earnings results.

Issuing an update on second quarter sales performance, Kohl's said it is seeing a softening in consumer spending and now expects sales to be down high-single digits for second quarter, as compared to prior expectations of down low-single digits relative to last year. The company said it is taking actions to navigate this environment and will share more when it releases earnings on August 18.

Shares of Kohl's Corp. are down 11% in pre-market trade on Friday.