Retailers have to try to pick winners, and whenever a company builds its
model upon picking winners it's just a matter of “when” (not “if”) the
company stumbles. Kohl's (NYSE:KSS)
did a lot of things right in building up its 1,150-store chain of
value-oriented specialty department stores, but execution has been more
problematic recently. Conventional valuation metrics suggest Kohl's
could have further to run if/when the reported numbers improve, but
investors thinking long term should be wary of the cash flow model and
the ability of any company to establish long-term competitive edges in
retailing.
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http://www.investopedia.com/stock-analysis/051613/kohls-could-work-trade-its-brutal-business-kss-jcp-gman-m-sks.aspx
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