Kohl’s Furloughs Workers, Draws Down $1 Billion Credit Line to Cope With Coronavirus Impact

Kohl’s Corp. (KSS) said on Monday it would extend its store closures and furlough employees due to the “significant impact” of the coronavirus on its business operations.

In addition, the department store operator announced that it would take the following measures to maintain financial flexibility: drawing down on its $1 billion revolving credit line, cutting spending by about $500 million, suspending share repurchases and evaluating its dividend plan.

For now, the analyst community has a cautious stance when it comes to Kohl’s stock. The Hold consensus rating breaks down into 10 Holds, 2 Buys and 1 Sell received in the last three months. At $37.23, the average price target puts the upside potential at 132%. (See Kohl’s stock analysis on TipRanks)

Kohl’s paid salaries for two weeks to all store and store distribution center employees. The company said it would continue to provide health benefits to furloughed employees. Furthermore, Kohl’s chief executive officer Michelle Gass, will forgo her salary.

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