Analysts at Deutsche Bank provided their takeaways from their meeting with Kohl's Corporation (NYSE:KSS) CEO Michelle Gass and VP of Investor Relations Mark Rupe.

The analysts think management commentary was positive around consumer demand and the company's top-line initiatives and financial framework. The company has laid the groundwork for growth along with improving profitability and is a nimbler company today than it was pre-pandemic.

Topics discussed included (1) the Sephora partnership (expected to drive $2 billion in sales), (2) growth in active and casual categories along with steps to reignite growth in women's, (3) puts and takes around the company's 7%-8% operating margin goal, (4) the macro backdrop, cost inflation, and the supply chain, and (5) new initiatives (e.g. the rollout of over 100 small-format stores).

The analysts said they walked away with the view that the company's full 2022-year guidance and long-term financial targets may prove to be prudent as management has greatly considered a number of headwinds. The analysts reiterated their Buy rating and $85 price target.