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Kohl's (KSS) Top Line to Gain From Alliance With POPSUGAR

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In line with its strategy to draw customers, Kohl's Corporation (KSS - Free Report) revealed plans to launch a fresh apparel collection — POPSUGAR at Kohl’s — in September. Being a popular media and technology company, POPSUGAR is likely to expand Kohl’s millennial brand portfolio and help the company identify customers’ needs more accurately.

Thus, Kohl’s is on track to build an innovative and data-driven apparel line, courtesy of its own speed-to-market model and POPSUGAR’s impressive analysis about customer demands. Incidentally, POPSUGAR at Kohl’s brings together fashion, media and a prompt merchandising setup that will use data and analytics to cater to millennial customers.

Curated by POPSUGAR, the new apparel collection will hit 500 Kohl’s stores as well as its website. It will join Kohl’s existing brands for millennials, including Circus by Sam Edelman, Converse, Nike (NKE - Free Report) and adidas (ADDYY - Free Report) among others. Clearly, partnership with POPSUGAR will enable Kohl’s move ahead with its strategy to boost millennial-focused products through appropriate brands and personalized marketing.

Kohl’s on Track With Sales-Driving Efforts

Well, Kohl’s has long been trying hard to attract more shoppers and improve sales. In fact, such efforts have been aiding the company to deliver improved comps since the past two quarters, thereby driving its overall performance. Incidentally, the company started accepting returns for Amazon (AMZN - Free Report) customers on select products and will provide free packing and shipping services for the merchandise to Amazon’s fulfillment centers. This move follows Kohl's decision to sell Amazon devices, accessories and smart home devices in 10 selected stores in Los Angeles and Chicago. Kohl’s believes that this store-within-store concept will boost store traffic.



Kohl’s comps indicate that the company’s strategic initiative, Greatness Agenda, is yielding results. The initiative, commenced in first-quarter 2014, was designed to drive transactions per store and sales. Apart from this, the company is benefiting from enhanced focus on prominent brands such as Nike and adidas, while it has been cutting down on the number of in-house brands. Kohl’s gained significant market share in active apparel and footwear up till the fourth quarter and expects the trend to continue, based on assortment improvements.

These factors have helped this Zacks Rank #2 (Buy) stock rally 80.8% in the past year, compared with the industry’s gain of 51.7%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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