Kohl’s (KSS) Baird 2024 Global Consumer, Technology & Services Conference summary

Evolving customer demographics and brand positioning

• Sephora partnership is attracting a younger customer base, with 35% of Sephora baskets including other categories like junior sportswear, accessories, and kids' items.

• Initiatives such as Babies "R" Us rollout in 200 stores aim to further appeal to younger consumers while maintaining value for core, older customers.

• Efforts are focused on connecting new Sephora customers to other store categories.

Consumer health and value strategies

• Middle-income customers remain pressured by inflation and interest rates, making value delivery critical.

• Proprietary brands have shifted to key value volume items, improving inventory turns and margins.

Growth outlook and merchandising initiatives

• Home decor, gifting, impulse, and baby categories identified as $2 billion incremental revenue opportunities over the next few years.

• Babies "R" Us launches in July, with 200 stores expected to drive incremental business.

• Impulse lines and gifting strategies are performing well, with further rollouts planned throughout the year.