Kohl’s Stock Soars 26% After Earnings. Yes, Kohl’s.

A shopper enters a Kohl’s store in Pleasant Hill, California on Monday, Nov. 24, 2025. Kohl’s Corp. is expected to release earnings figures on November 25. (David Paul Morris/Bloomberg)

Key Points

• Kohl’s reportes adjusted earnings of 10 cents a share for the third quarter, exceeding analysts’ projections that called for a loss of 16 cents.
• Net sales for the quarter decrease by 2.8% year over year to $3.4 billion but surpassing expectations of $3.3 billion.
• The company increases its fiscal-year outlook, now expecting net sales to decline between 4% and 3.5%, versus past guidance anticipating a decline of between 6% and 5%.

Kohl’s stock soared Tuesday after the retailer swung to a surprise profit for its third quarter and hiked fiscal-year guidance.

The company reported adjusted earnings of 10 cents a share for the quarter ended Nov. 1, a better outcome than the loss of 16 cents a share analysts were projecting, according to FactSet.

Net sales fell 2.8% from the year before $3.4 billion, but topped expectations of $3.3 billion.

“We are pleased with Kohl’s third quarter results, marking a third consecutive quarter of delivering top-line and bottom-line performance ahead of our expectations,” said CEO Michael Bender. “These results are a direct reflection of the progress we are making against our 2025 initiatives, reinforcing our confidence as we continue to move in the right direction.”

The company raised its fiscal-year outlook. Net sales are now projected to decline between 4% and 3.5% from the prior year. The company’s past guidance called for a decline of between 6% and 5%.

Adjusted earnings per share will range from $1.25 to $1.45, significantly above second-quarter guidance calling for a range of $0.50 to $0.80.

Kohl’s was up 32% Tuesday morning to $20.83. The surge is partially due to the stock’s sizable short interest—27.2% of its float is sold short. The company’s good news likely forced investors who sell the stock short to buy more shares to limit their losses, driving the price even higher in a self-reinforcing loop. The stock’s short interest made it a target of meme-stock traders looking to trigger a short squeeze this summer.

Barron’s noted at the time that the temporary enthusiasm in the shares would do little to solve the company’s longstanding problems, which include years of declining sales, shrinking profitability, and management turmoil.

The company has had four CEOs since 2018, including Bender, each with a different vision for the company. His predecessor, Ashley Buchanan, was fired in May after only five months for unethical conduct. Buchanan had pushed a deal with a vendor headed by a woman who he had a relationship with.

Bender has been interim CEO since May, and was named Kohl’s permanent chief executive on Monday. Wall Street welcomed the appointment, saying it would provide Kohl’s with some much-needed leadership stability.

The guidance raise is another “encouraging sign” given that department stores in general have struggled to drive store traffic and claw back market share in an uncertain macroeconomic environment, wrote Dana Telsey, CEO of Telsey Advisory Group.

That said, she notes that it will take time to “win back the consumer,” a fact that Bender acknowledged on an earnings call Tuesday.

“While we are encouraged with the progressive improvement we’re making, we want to acknowledge that this performance is not representative of where we aspire to be,” Bender said.

Bender seems to be staying the course that Buchanan began to chart earlier this year. On an earnings call Tuesday, Bender outlined his three priorities for Kohl’s: offering a more curated product assortment, re-establishing Kohls’ reputation as a leader in value and quality, and delivering a better experience in stores and online.

Write to Sabrina Escobar at sabrina.escobar@barrons.com