That decline added to significant short-term losses for investors, with shares down over 60% so far in 2020.
There was no shortage of bad news for investors to digest last month. Following sharp sales declines due to consumer shopping behavior changes tied to the COVID-19 pandemic, Kohl's shares were removed from S&P 500. The department store giant's 10-Q filing on Sept. 3 also detailed the rising strain on the business, which today counts over $3.4 billion of long-term debt, up from $1.8 billion a year ago. The effective interest rate on that leverage is climbing, too.
Its financial challenges convinced management to announce a second round of restructuring aimed at further slashing costs. These cuts might position the company for solid rebound once the industry recovers. But most investors are taking a wait-and-see approach, at least until there's a clear path out of recessionary selling conditions for the apparel industry.