Kohl's Corp (KSS.US) stock slid over 21.0% on Friday after the department store chain called off its sale to Vitamin Shoppe-owner Franchise Group, as deteriorating retail and financial environment presented significant obstacles to concluding a takeover deal worth approximately $8 billion.
- Yesterday CNBC was the first to report that Kohl's was terminating talks to sell its business, which began at the beginning of June, after speculation emerged that the Franchise Group was trying to lower its bid for Kohl's by $10, to $50 a share, amid the broader market sell-off.
- Kohl's is planning to launch an "accelerated share repurchase program" in order to erase some of the recent losses and will provide more details regarding his next steps in the current rocky retail environment when it publishes second quarter earnings on August 18.
- Company also lowered its current-quarter financial guidance due to weaker consumer spending. Kohl now expects that sales will fall to high-single digits, compared with a prior forecast of down low-single digits relative to last year.
Kohl's Corp (KSS.US) stock launched today’s session with a massive bearish price gap. If sellers will manage to uphold current momentum then downward move may deepen towards the key support zone around $22.10 which is marked with lower limit of the 1:1 structure and 78.6% Fibonacci retracement of the downward wave launched in March 2020. In order to make the outlook more bullish, buyers would have push the price back above 61.8% retracement in the $30.75 area. Source: xStation5
