Raphael Stevens

Monday – Friday, 6:00 – 7:00 PM ET

CNBC’s Jim Cramer on Friday offered viewers his game plan for the next five trading days on Wall Street, including earnings from Chipotle, Coca-Cola and Disney.
“This week we saw the true colors of what is a treacherous market,” the “Mad Money” host said.

CNBC’s Jim Cramer on Friday offered viewers his game plan for the next five trading days on Wall Street.
The “Mad Money” host’s lookahead came after the S&P 500 and Nasdaq Composite posted their best weeks so far in 2022, finishing 1.5% and 2.4% higher, respectively.

“This week we saw the true colors of what is a treacherous market,” the “Mad Money” host said. If investors love a stock, there’s “no level it won’t be taken up to,” he said. “But if it’s hated? There are no depths it won’t sink to. Either way … it’s likely to be an extreme.”
All revenue and earnings per share estimates are from FactSet.

Monday: Tyson Foods, Two-Take Interactive and Simon Property Group

Tyson Foods

Q1 earnings release before the bell; conference call at 9 a.m. ET
Projected EPS: $1.93
Projected revenue: $12.17 billion

Cramer said the company’s quarter should provide insights into the country’s meat supply chain, which has experienced a host of challenges during the Covid pandemic.
Take-Two Interactive

Q3 earnings release after the close; conference call at 4:30 p.m. ET
Projected EPS: $1.12
Projected sales: $868 million

Take-Two’s quarter will provide a glimpse into how much of the pandemic-related surge in gaming has stuck around, Cramer said. “[CEO] Strauss Zelnick is the straightest of straight shooters. If demand is waning, he’s just going to say it.”
Simon Property Group

Q4 earnings release after the bell; conference call at 5 p.m.
Projected EPS: $2.89
Projected revenue: $1.25 billion

Tuesday: Centene, Pfizer, Chipotle, DuPont and Peloton

Centene

Q4 earnings before the open; conference call at 8:30 a.m. ET
Projected EPS: 98 cents
Projected revenue: $32.5 billion

“I think it’s a takeover target and I bet we’ll get a very good quarter,” Cramer said of the health insurer.
Pfizer

Q4 earnings before the bell; conference call at 10 a.m. ET
Projected EPS: 87 cents
Projected sales: $24.16 billion

Cramer also said he expects very good numbers from Pfizer.
DuPont

Q4 earnings before the open; conference call at 8 a.m. ET
Projected EPS: 99 cents
Projected revenue: $4.02 billion

“The great industrials have had a real up and down time in this market and I fear this could be DuPont’s down time, which is why we finally decided to ring the register for a terrific profit for the charitable trust,” Cramer said.
Chipotle

Q4 earnings after the close; conference call at 4:30 p.m. ET
Projected EPS: $5.25
Projected sales: $1.96 billion

Cramer said Chipotle’s quarter is the one he’s most interested in Tuesday. “I think it could do low double-digit same-store sales versus last year’s already excellent numbers and that should cause the stock to ignite,” he said. “Raw costs are always a problem in the business, though.”
Peloton

Q2 earnings after the close; conference call at 5 p.m. ET
Projected EPS: Loss of $1.22
Projected revenue: $1.14 billion

Cramer said he’s looking for a host of updates from Peloton’s management after the exercise equipment maker’s stock has been pummeled in recent months. One topic that is likely to come up is The Wall Street Journal’s report Friday that Amazon has approached Peloton about a potential deal, Cramer said.

Wednesday: CVS Health, PepsiCo, Disney and Mattel

CVS Health

Q4 earnings release before the bell; conference call at 8 a.m. ET
Projected EPS: $1.83
Projected sales: $75.66 billion

“I expect a very good quarter from CVS [because of] Covid testing, but what happens next?” Cramer said. “Have they monetized the vaccination seekers? That would take it to the next level.”
PepsiCo

Q4 earnings release before the open; conference call at 8:15 a.m. ET
Projected EPS: $1.52
Projected revenue: $24.24 billion

Cramer said he was surprised the beverage giant’s stock fell 1.6% Friday, suggesting he’d pick up some shares ahead of the quarterly print.
Disney

Q1 earnings release after the close; conference call at 4:30 p.m. ET
Projected EPS: 73 cents
Projected revenue: $20.27 billion

Cramer said he thinks the media and entertainment giant does not get enough credit for the value of its intellectual property. “This isn’t Netflix. It isn’t Facebook. It’s a one-of-a-kind growth vehicle. It is not stagnant. It is not dead, and that’s why I’d like to build a bigger position ahead of the quarter for my trust,” he said.
Mattel

Q4 earnings release after the close; conference call at 5 p.m. ET
Projected EPS: 33 cents
Projected revenue: $1.66 billion

“I think there could be a whole new slate of toys and entertainment from CEO Ynon Kreiz, who’s been a turnaround whizz,” Cramer said.

Thursday: Coca-Cola, Twitter, Cloudflare and Zendesk

Coca-Cola

Q4 earnings release before the bell; conference call at 8:30 a.m. ET
Projected EPS: 41 cents
Projected revenue: $8.98 billion

While Cramer said he expects a good quarter from Coca-Cola, he specifically mentioned looking for updates on the beverage maker’s partnership with Molson Coors on a Topo Chico hard seltzer. “I think this is the next big spiked [beverage],” Cramer said.
Twitter

Q4 earnings release before the bell; conference call at 8 a.m. ET
Projected EPS: 33 cents
Projected revenue: $1.58 billion

It’s unclear whether Twitter’s digital ad business faces challenges like Facebook parent Meta or is growing just fine like Amazon or Alphabet, Cramer said. “I think we’ll find out that it remains the same old plodding Twitter when it reports—a company that has nothing we truly want to pay up for,” Cramer said.
Cloudflare

Q4 earnings after the close; conference call at 5 p.m. ET
Projected EPS: 0 cents
Projected revenue: $185 million

Cramer said he’s anticipating “great numbers” from the cybersecurity firm, but “I don’t expect anyone to care” because the stock is out of favor on Wall Street.
Zendesk

Q4 earnings after the bell; conference call at 5 p.m. ET
Projected EPS: 18 cents
Projected sales: $371 million

Cramer said he’s keeping an eye out for an update on Zendesk’s pursuit of Momentive Global, a deal which activist investor Jana Partners has urged Zendesk to drop.

Friday: Under Armour, Cleveland-Cliffs and Goodyear Tire & Rubber

Under Armour

Q4 earnings release before the open; conference call at 8:30 a.m. ET
Projected EPS: 6 cents
Projected sales: $1.47 billion

“There’s lots of good buzz about this one, so much that I think it’s actually a terrific speculation going into the quarter. We keep hearing about a potential turnaround, maybe this time it’s going to happen,” Cramer said.
Cleveland-Cliffs

Q4 earnings before the bell; conference call at 10 a.m. ET
Projected EPS: $2.15
Projected revenue: $5.73 billion

“I’m betting actually that Cleveland-Cliffs will do a decent number,” Cramer said, complimenting the company’s management and improved balance sheet.
Goodyear Tire & Rubber

Q4 earnings before the open; conference call at 9 a.m. ET
Projected EPS: 32 cents
Projected sales: $5.01 billion

“I think that Goodyear will positively dazzle,” Cramer said.
Sign up now for the CNBC Investing Club to follow Jim Cramer’s every move in the market.
Disclaimer

Questions for Cramer?Call Cramer: 1-800-743-CNBC
Want to take a deep dive into Cramer’s world? Hit him up!Mad Money Twitter – Jim Cramer Twitter – Facebook – Instagram
Questions, comments, suggestions for the “Mad Money” website? [email protected]

WATCH LIVEWATCH IN THE APP More

Peloton has been battered and beaten down so much so in recent months that the connected fitness company is now attracting interest from outsiders.
Shares of Peloton surged in extended trading Friday after the Wall Street Journal reported e-commerce giant Amazon has approached the company about a potential deal. Other potential suitors are circling, the Journal said.
Peloton is not yet running a formal sales process, but there is real interest in the company, a person familiar with the talks told CNBC.

Brody Longo works out on his Peloton exercise bike on April 16, 2021 in Brick, New Jersey.
Michael Loccisano | Getty Images

Peloton has been battered and beaten down so much so in recent months that the connected fitness company is now attracting interest from outsiders.
Shares of Peloton surged more than 30% in extended trading Friday after the Wall Street Journal reported e-commerce giant Amazon has approached the company about a potential deal. Other potential suitors are circling, the Journal said, but no deal is imminent and there may not be one at all.

Peloton is not yet running a formal sales process, but there is real interest in the company, a person familiar with the talks told CNBC.

A representative from Peloton didn’t immediately respond to CNBC’s request for comment. Amazon declined to comment.
The potential interest from outsiders comes as Peloton shares have tumbled in recent months and activist group Blackwells Capital, which has a less than 5% stake, has urged the company publicly to consider a sale. In its letter to Peloton’s board, which also called for Chief Executive John Foley to be fired, Blackwells speculated that potential buyers could include Apple or Nike.
Peloton’s market cap of roughly $8 billion has fallen from a high of nearly $50 billion about a year ago. Investors poured into the stock after the onset of the Covid pandemic, sending shares up more than 440% in 2020. But they’ve started to flee as many realize that future growth will come at a much higher cost. Shares closed Friday at $24.60, well below its IPO price of $29.
Peloton could be an attractive target, given the selloff, for any company looking to further its ties to the health and wellness industry. Amazon has been investing in connected health for years, including by launching a Halo Health and Wellness tracker. And last year, Amazon added interactive home video workouts and guided meal planning to Halo subscriptions.

It’s not immediately clear what Amazon would do with Peloton’s hardware and technology, but it’s possible Amazon could integrate Peloton’s offerings into its growing devices unit, which houses its popular Fire TV streaming sticks, voice-activated Echo smart speakers and an expansive lineup of connected home products. 
Peloton’s original Bike, which costs $1,745 including shipping, would become the most expensive hardware Amazon sells, aside from its $999 Astro home robot. Peloton’s Bike+ is even more costly, at $2,495. Its Tread retails for $2,845.
According to the Journal, Amazon’s existing businesses, such as its logistics arm, could also further help Peloton address ongoing supply chain issues. A monthly Peloton subscription, which is $39 for people who own one of its connected devices, could also theoretically be bundled into Amazon’s Prime membership, it said.

A man walks in front of a Peloton store in Manhattan on May 05, 2021 in New York.
John Smith | Corbis News | Getty Images

Peloton is set to report fiscal second-quarter results on Tuesday, after the market close, and all eyes will be on its full-year outlook. Peloton last week preannounced a handful of second-quarter metrics, including revenue, which is expected to be within its expected range, and connected subscribers, which came up short of its own estimates.
Back in November, Peloton slashed its fiscal 2022 forecast as it reported slowing revenue and waning subscriber growth. Foley warned at the time that it was becoming more difficult for Peloton to project growth, as it lapped massive pandemic gains.
Through 2020 and into 2021, Peloton invested heavily to ramp up its supply. It hired thousands of more employees to help with customer service requests and home deliveries. But that has left the company with a bloated cost structure.
CNBC reported last month that Peloton is working with consulting firm McKinsey to look for areas to cut costs, which will likely entail layoffs. Peloton is also planning to right-size its production.
Foley said in a statement in late January that Peloton is “taking significant corrective actions to improve our profitability outlook and optimize our costs.”
In a separate memo to employees, which was shared publicly, the CEO wrote: “We’ve found ourselves in the middle of a once-in-a-hundred year event with the COVID-19 pandemic, and what we anticipated would happen over the course of three years happened in months during 2020, and into 2021.”
Some analysts have argued that the selloff in Peloton shares has resulted in the market undervaluing the company’s existing base of connected fitness subscribers. Peloton counted about 2.5 million at the end of its first quarter. Its entire member base, which includes digital-only subscribers, totaled 6.2 million. These could be a valuable asset for any potential suitors.
In a note to clients dated Jan. 20, Loop Capital Markets said that Peloton’s subscription business alone could be worth “substantially more” than the company’s current market value.
Analyst Daniel Adam said that assuming the most recent count of 2.5 million connected fitness subscribes, the business could be worth as much as $80 per share. He added that this valuation makes Peloton more comparable to Netflix.
Amazon has made several large, notable acquisitions in recent years. Amazon purchased upscale grocer Whole Foods for $13.7 billion in 2017, its biggest deal by far. Last May, it inked a deal to acquire MGM Studios for $8.45 billion.

WATCH LIVEWATCH IN THE APP More

Monday – Friday, 6:00 – 7:00 PM ET

It’s that time again! “Mad Money” host Jim Cramer rings the lightning round bell, which means he’s giving his answers to callers’ stock questions at rapid speed.

Loading chart…

Rivian: “No, I don’t think [it’s going to be the next Tesla]. I think that it’s going to be a very unsexy truck maker. I have to tell you, Ford has to sell its stock [in Rivian]. Why don’t we buy GM? I mean, [GM CEO] Mary Barra is doing a good job. If you want those vans, she’s got a whole van division. I know it’s a little old fashion. Let’s give it a shot.”

Loading chart…

Gilead Sciences: “I’m not a fan. I haven’t been a fan. They have what I call big hat, no cattle, and I like ones that have cattle.”

Loading chart…

AT&T: “Small hat, no cattle. There’s just not much too it. I’d rather see you in Verizon, which I thought [CEO] Hans Vestberg  acquitted himself very well when he was on ‘Mad Money’ and told a better growth story.”

Loading chart…

Berkshire Hathaway: “No. They are doing better quality work now than they ever have. I think the stock is just a superior, terrific buy.”

Loading chart…

United Airlines: “I’m not recommending airline stocks right now. It’s just too tough, too competitive.”
Sign up now for the CNBC Investing Club to follow Jim Cramer’s every move in the market.

WATCH LIVEWATCH IN THE APP More

Monday – Friday, 6:00 – 7:00 PM ET

Columbia Sportswear’s strong Q4 profitability was helped by consumers starting their holiday shopping earlier than years past, CEO Tim Boyle said Friday.
“That made for lack of promotional activity in our stores and also through our retail partners,” he said on “Mad Money.”
Columbia’s operating income of $211.6 million in the fourth quarter was a record for the Oregon-based company.

Columbia Sportswear’s strong fourth-quarter profitability was helped by consumers starting their holiday shopping earlier than years past, CEO Tim Boyle told CNBC’s Jim Cramer on Friday.
Shares of the outdoor-focused apparel maker jumped 5% Friday, after the company a day earlier reported a 64% year-over-year jump in net income in Q4 and issued robust full-year guidance.

“In today’s environment where there was so much impact on supply chain, shortages really all over the world, I think we were helped a bit because consumers moved earlier to buy whatever they needed for their holiday and winter products,” Boyle said.
“That made for lack of promotional activity in our stores and also through our retail partners. Their promotions were smaller, as well,” Boyle continued.
Columbia’s operating income of $211.6 million in the fourth quarter was a record for the Oregon-based company. It represented 18.7% of net sales, compared with 13.5% of net sales in the same quarter in 2020.
Columbia projects sales between $3.63 billion and $3.69 billion in 2022, a potential increase between 16% and 18% compared with 2021 figures. Cramer told Boyle he was impressed by the company’s guidance, given the challenging business environment with inflationary pressures and a disheveled supply chains.
“Much of it is based on the fact that we have quite broad omnichannel business,” responded Boyle, who has led Columbia since 1988. “We sell to a lot of retailers globally. We’ve got orders from those retailers, which are going to basically fill our order book this year, so it gives us a great amount of confidence in our future.”

Columbia shares are down just under 3% year to date after Friday’s advance. Over the past three months, the stock is down 9.7%, based on Friday’s closing price of $94.59. The stock’s all-time high of $114.98 came on April 29.
Sign up now for the CNBC Investing Club to follow Jim Cramer’s every move in the market.

WATCH LIVEWATCH IN THE APP More

Ford is cutting vehicle production next week of several key products due to an ongoing global shortage of semiconductor chips.
Impacted products include the F-150 pickup, Mustang Mach-E electric crossover, Bronco SUV and other vehicles.
The cuts come a day after Ford significantly missed Wall Street’s earnings expectations due to supply chain issues, sending shares to tumble 9.7% on Friday.

Bronco SUVs in production at Ford’s Michigan Assembly plant, June 14, 2021.
Michael Wayland | CNBC

DETROIT – Ford Motor is cutting production next week of several key products due to an ongoing global shortage of semiconductor chips.
The automaker on Friday confirmed production downtime next week for the Ford Bronco and Explorer SUVs; the Ford F-150 and Ranger pickups; the Ford Mustang Mach-E electric crossover; and the Lincoln Aviator SUV at plants in Michigan, Illinois, Missouri and Mexico due to the parts shortage.

The automaker also is cutting some productions of the F-150 and Ford Transit cargo vans at plants in Michigan and Missouri.
The cuts signal the chip shortage that devastated the auto industry last year continues to linger. They come a day after Ford significantly missed Wall Street’s earnings expectations due to lower-than-expected production caused by the supply chain issues, causing shares to tumble 9.7% on Friday.

“The global semiconductor shortage continues to affect Ford’s North American plants – along with automakers and other industries around the world,” Ford said in an emailed statement. “Behind the scenes, we have teams working on how to maximize production, with a continued commitment to building every high-demand vehicle for our customers with the quality they expect.”
The fact that Ford is cutting some of its most profitable and in-demand models such as the Bronco, Mach-E and F-150 shows automakers continue to battle with the problem despite many in the industry expecting a gradual improvement in the supply of chips in 2022.
Ford sold 1.9 million vehicles in the U.S. in 2021, down by 6.8% as it managed through a global shortage of semiconductor chips. The parts problem forced Ford and other automakers to sporadically shutter plants and depleted vehicle inventories.
After increasing by roughly 140% in 2021, shares of Ford are down by 13.5% this year.

WATCH LIVEWATCH IN THE APP More

The American Dream megamall in New Jersey, crippled by construction delays and stalled store openings, is running out of money.
Developers nearly emptied a reserve account to make a $9.3 million payment that was due Tuesday, on about $290 million of debt supported by sales tax receipts, according to a securities filing.
About $820 is left in the reserve fund, the filing said. And it’s unclear whether or not the developers will be able to make their next payment, which is due on Aug. 1. 

American Dream megamall and entertainment complex in East Rutherford, N.J. After more than 17 years in the making, it finally opened October 25, 2019. Then came the coronoavirus pandemic.
Timothy A. Clary | AFP | Getty Images

The American Dream megamall in New Jersey, crippled by construction delays and stalled store openings, is running out of money.
The more than 3-million-square-foot retail and entertainment complex nearly emptied a reserve account to make a $9.3 million payment that was due Tuesday, on about $290 million of debt supported by sales tax receipts, according to a securities filing.

About $820 is left in the reserve fund, the filing said. And it’s unclear whether or not the developers will be able to make their next payment, which is due on Aug. 1. 
American Dream spokeswoman Melissa Howard said developers Triple Five Group are “extremely pleased” with the early success of tenants. This year, American Dream will open more than 100 retail, entertainment and restaurant concepts, she said, including a two-story Gucci flagship.
The filing also included a letter from bond servicer Trimont Real Estate Advisors, which said American Dream wasn’t offering updates on project expenses and performance, as it is obliged to do under bond documents.
“While everyone appreciates the difficulties posed by the pandemic, and the likelihood that grant revenue received now may not be sufficient to fully pay the bonds, that does not relieve the developer from responsibility to comply with its obligations under the various agreements,” Trimont said in the letter, dated Jan. 18.

The Covid-19 health crisis brought a new set of obstacles to American Dream, which has been decades in the making. On March 16, 2020 — just three days ahead of the grand opening of dozens of retail stores — the megamall shut down due to pandemic-related restrictions. Parts of the property have since reopened or officially opened their doors, albeit on stalled timelines. A wing of luxury shops debuted last fall, with just a handful of stores including Hermes and Saks Fifth Avenue.

American Dream’s sales were about $220 million for the first three quarters of 2021, according to separate public disclosures. And that’s nowhere near the $2 billion that developers projected American Dream would bring in during its first year of operations.
As of Jan. 1, American Dream was about 77% leased, with leases for another 5% of space in negotiations.
Triple Five previously defaulted on its $1.4 billion Mall of America mortgage, missing months of payments. It was struggling to pay its bills when tenants weren’t paying rent on time. However, it eventually reached a deal with lenders to avoid foreclosure of the property, and the loan was made current as of December 2020.
Then, last year, Triple Five lost 49% of its stakes in the Mall of America and the West Edmonton Mall in Canada to American Dream’s construction lenders.
In December, Toys R Us opened a flagship store at American Dream, which was seen as a minor vote of confidence in the megamall.
Bloomberg first reported on the filing.

WATCH LIVEWATCH IN THE APP More

A Texas furniture mogul appears to have set a U.S. record for a mobile sports bet with his $4.5 million wager that the Cincinnati Bengals will win the Super Bowl.
Jim McIngvale, who is known as “Mattress Mack,” has gained a national following for his outsized sports wagers.
Mack’s sports bets are used to hedge his sports-themed promotions at his furniture store.

Jim McIngvale, better known as “Mattress Mack,” said he drove 100 miles from Houston to cross the border into Louisiana on Thursday to make what’s believed to be the largest mobile sports wager in U.S. history.
The furniture store mogul bet $4.53 million on the Cincinnati Bengals to win Super Bowl LVI.

To make the bet legally, McIngvale had to leave his home state of Texas for Louisiana, which just launched mobile sports betting on Jan. 28. McIngvale drove to a convenience store just across the border to make the wager on Caesars Sportsbook app.
“If you could see me there, pecking on my phone for two hours, you’d see it wasn’t too glamorous,” he said in an interview.
Mattress Mack is known for making outrageous sports bets to lessen the impact of his sports-themed sales promotions at his furniture store. The current promotion offers to refund any mattress or reclining living room furniture purchase if the Bengals win the Super Bowl.

Houston business owner Jim Mattress Mack McIngvale poses for a portrait at his store Gallery Furniture in Houston, Texas on February 17, 2021.
Mark Felix | The Washington Post | Getty Images

If the Bengals conquer the Los Angeles Rams, the $7.7 million dollars McIngvale will win will allay the cost of the refunds, he said. If the Bengals lose, he admits he’s out $4.5 million and likely in the doghouse with his wife, but says he’s creating brand recognition and excitement for his customers.
He credits Caesars Sportsbook with accepting this sizable wager, and says other sportsbooks have turned him down or given him less-favorable odds.

Caesars Sportsbook told CNBC, “We’re not at all afraid to take in a $4.5 million bet on the Super Bowl, and we embrace accepting the biggest bets on the biggest events.”
The Super Bowl is the biggest single sports betting event in the U.S. The largest known bet on the game was a $7.9 million wager at -900 odds in 2002.
Mack said he tried but failed to make a single $4.5 million bet. Instead, he entered multiple bets to make that wager. However, Caesars Sportsbook said its system can handle a wager of that magnitude on one bet slip.

WATCH LIVEWATCH IN THE APP More

Kohl’s said recent takeover offers undervalue its business in light of future growth and cash flow generation, following a review by independent financial advisors.
The department store also has adopted a shareholder rights plan, otherwise known as a “poison pill,” in order to avert a hostile takeover. The plan is effective immediately and expires in February 2023.
Kohl’s said it will provide more updates on its plans during an investor day set for March 7.

Kohl’s said Friday it believes recent takeover offers undervalue its business in light of future growth and cash flow generation, following a review by independent financial advisors.
The department store also said it has adopted a shareholder rights plan, otherwise known as a “poison pill,” in order to avert a hostile takeover. The plan is effective immediately and expires in February 2023.

Kohl’s shares rose more than 2% in trading Friday. The stock has surged in recent weeks on the news of potential suitors, but remains below a 52-week high of $64.80 reached last May.
“The valuations indicated in the current expressions of interest which it has received do not adequately reflect the company’s value in light of its future growth and cash flow generation,” Kohl’s said in a statement.
Last month, Acacia Research, backed by activist investment firm Starboard Value, offered to pay $64 a share for Kohl’s, valuing it at about $9 billion. Private equity firm Sycamore Partners was also planning an offer of $65 a share, people familiar with the offer told CNBC.

The Kohl’s logo is displayed on the exterior of a Kohl’s store on January 24, 2022 in San Rafael, California.
Justin Sullivan | Getty Images

Activist hedge fund Macellum Advisors has, meanwhile, been asking Kohl’s to consider selling itself and wants at least one seat on the retailer’s board. It plans to present a slate of nominees for the board “in the coming days.”
“We are disappointed and shocked by Kohl’s hasty rejection of confirmed indications of interest,” said Jonathan Duskin, Macellum’s managing partner, in a letter issued Friday after Kohl’s decision was announced. “This morning’s rejections — which come just two weeks after outreach from potential acquirers — only validates for us that a majority of the Board is entrenched and lacks objectivity when it comes to evaluating value-maximizing sale opportunities relative to management’s historically ineffective standalone plans.”

Kohl’s reiterated Friday that its board is committed to maximizing shareholder value and will review and pursue opportunities that the company believes will “credibly lead to value consistent with its performance and future opportunities.”
The department store has formed a finance committee, comprised exclusively of independent directors, to lead an ongoing review of any future expressions of interest in the company. It is also working with bankers at Goldman Sachs and PJT Partners on those efforts.
Kohl’s said its shareholder rights plan is triggered if a person or group acquires a beneficial interest of 10% or more. If that occurs, existing investors will be able to buy new shares at a 50% discount. The trigger for passive institutional investors is 20%, the company said. It added, existing holdings are grandfathered in.
Cowen & Co. analyst Oliver Chen had previously said he did not expect the per-share offers of $64 and $65 would be enough when considering the underlying value of Kohl’s real estate. Last month, Chen said he estimated Kohl’s stores could be sold for anywhere from $10 million to $14 million apiece, depending on location and traffic. However, Kohl’s has been resistant to doing any additional sale-leaseback transactions.
At that time, Chen said there was a 30% to 40% chance that a deal would be done for $75 a share, or higher. However, he also said there was a 40% chance there’s no transaction.
Kohl’s said it plans to provide more updates on its strategy during an investor day set for March 7.
Kohl’s shares have risen nearly 19% this year, as of Thursday’s market close. That brings its market cap to $8.2 billion.
Read the full press release from Kohl’s here.

WATCH LIVEWATCH IN THE APP More