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Investing.com -- Kohl’s Corporation (NYSE:KSS) stock tumbled 12% Tuesday after Bloomberg reported the department store chain is asking some suppliers for extended payment terms on invoices.
According to people familiar with the situation, Kohl’s is adjusting its payment strategy as part of broader efforts to execute a turnaround plan. The move comes at a difficult time for the retail industry, which continues to face challenges from weak consumer spending and supply chain disruptions exacerbated by tariffs.
Retailers typically seek longer payment terms as a method to manage working capital fluctuations and preserve cash resources. For Kohl’s, this adjustment appears to be part of its operational strategy review.
"Kohl’s regularly reviews our work to ensure we are operating as effectively and efficiently as possible," a company spokesperson said in an emailed statement to Bloomberg.
The significant stock decline reflects investor concerns about Kohl’s financial position and cash management as it navigates a challenging retail environment. The company has been working to implement various turnaround initiatives amid persistent industry headwinds.
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