Kohl's extends gains to 13%, most since late November
TL;DR
Kohl's stock surged 12.7% after reporting better-than-expected Q3 earnings and revenue, raising full-year guidance, driven by improved margins and cost controls despite sales declines.
Tags
Kohl’s Corporation (NYSE:KSS) shares surged 12.7% following the release of better-than-expected third-quarter financial results, marking the stock’s largest single-day gain since late November 2025. The retailer reported adjusted earnings of $0.10 per share, exceeding the analyst consensus estimate of a $0.18 loss, while revenue reached $3.41 billion, surpassing expectations of $3.33 billion. Despite a 2.9% year-over-year revenue decline, the performance reflected improved gross margins and disciplined inventory management, with merchandise inventories down 5% to $3.90 billion.
The company raised its full-year 2025 earnings per share guidance to a range of $1.25–$1.45, significantly above the prior analyst consensus of $0.72. CEO Michael J. Bender, who transitioned from interim to permanent leadership in May 2025, attributed the results to progress on strategic initiatives, including cost controls and customer experience enhancements. However, the outlook still anticipates a 3.5%–4% decline in annual net sales, with comparable sales projected to fall 2.5%–3%.
The rally adds to Kohl’s recent momentum, as the stock has rebounded from a multi-year low in early 2025. Analysts note the results demonstrate resilience amid a challenging retail environment, though sustained execution will be critical to maintaining investor confidence. The company’s updated guidance and operational improvements have positioned it as a key name to watch in the retail sector as the holiday season approaches.
