Fitch Ratings for Kohl uk

Kohl is a black pigment used by women to outline their eyelids and water line in parts of Africa. It is applied to the eyebrows as well, for a more defined appearance. The practice is similar to the use of henna. Kohl is applied for special occasions, such as weddings and Islamic festivals. It is also worn during trips to the mosque for Jumuah congregational prayers.

Kohl uk
Kohl’s current business model is challenged by longer-term secular challenges in the department store segment, including declining consumer spending on discretionary categories like apparel and home, shifts in shopping behavior away from malls (less impactful to Kohl’s given its off-mall real estate positioning), and continued share losses to lower-priced value channels. Fitch expects that Kohl’s will be able to sustain topline growth through initiatives such as the Sephora rollout, increased investment in digital/omnichannel, expansion of its private brands and athleisure offerings, and modest store growth. The company should generate material EBITDA growth and reduce adjusted leverage below 3x, which would support the stabilization of its Outlook.

Kohl’s faces risks from a class action lawsuit alleging that the company has inflated suggestions of comparable prices on its website, making customers think they are getting better deals. In our view, this practice is inherently deceptive and may create unfair competition issues for consumers. This is particularly true when the retailer makes these comparison suggestions to its own site visitors. As a result, Kohl is at risk of having to pay damages and compensatory relief to consumers.kohl uk