Kohl’s Stock Jumps On Q1 Earnings Beat, Reaffirmed Guidance

For the full year 2025, the company continues to expect net sales to decline between 5% and 7%, with comparable sales decreasing between 4% and 6%.

Kohl’s (KSS) shares jumped 13.5% at Thursday’s open following the release of first-quarter results that showed a significantly smaller loss than analysts had anticipated, and reaffirmed its full-year guidance.

The department store chain reported a diluted loss per share of $0.13, narrower than the expected loss of $0.22, as per Koyfin data. 

Its revenue decreased 4.1% year-over-year (YoY) to $3.05 billion, missing Wall Street’s estimate of $3.06 billion by a whisker. Comparable sales were down 3.9% as compared to the previous year. 

“Our first quarter performance was ahead of our expectations, and the actions we are taking are starting to make progress with early signs of a positive impact,” said interim CEO Michael Bender, marking his quarterly earnings debut.

Bender took over after Kohl’s fired former CEO Ashley Buchanan earlier this month, just four months into his tenure, for trying to steer business to his romantic partner, Chandra Holt. The company stated that Buchanan did not disclose the relationship as required by its ethics policy and deemed his actions to be cause for dismissal.

During the first quarter (Q1), gross margin as a percentage of net sales rose by 37 basis points to 39.9%. Selling, general, and administrative (SG&A) expenses declined 5.2% year-over-year to $1.2 billion, representing 36.0% of total revenue, a decrease of 32 basis points.

Operating income increased to $60 million from $43 million in the prior year, equivalent to 1.9% of total revenue. 

The company reported a net loss of $15 million, an improvement from the $27 million net loss in the previous year. Inventory rose 2% YoY to $3.1 billion. Operating cash flow was negative $92 million.

For the full year 2025, the company continues to expect net sales to decline between 5% and 7%, with comparable sales decreasing between 4% and 6%. 

Operating margin is projected to range from 2.2% to 2.6%, while diluted earnings per share are expected to fall between $0.10 and $0.60. 

Capital expenditures are forecasted to be between $400 million and $425 million. 

Kohl’s stock has fallen 35% this year, and more than 65% over the past 12 months. 

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