Over a three-year span, Kohl’s’ Corporation, has seen a drop in their net income. The last two years Kohl’s decline was minimal, but nonetheless disappointing when both Nordstrom and Macy’s reported an increase in earnings. ,2,3 Earnings are cyclical in the retail industry and consumers very cautious; exhibiting post-recession buying habits.1,4,5 Along with consumers post-recession buying habits Kohl’s attributes declining sales on the weather and port disruptions. Since 2012 total sales have decreased by 2%. 6 Gross margin as a percentage of sales was 36.4% in 2014 (8 basis points lower than in 2013). Kohl’s reports that their merchandise margin increased, but was offset by higher shipping due to growth in on-line orders.8 Kohl’s