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Kohl's Stock Soars on Surprise Earnings Beat
29 May
Summary
- Kohl's reported a narrowed net loss of $14 million ($0.13 per share) for Q1.
- Net sales fell 1.7% year over year to $3 billion, but beat analyst estimates.
- The company reiterated its full-year 2026 guidance for flat to 2% lower sales.
Kohl's stock experienced a significant boost on Thursday, with shares climbing by almost 21% following the release of its first-quarter earnings report. The retailer, which has faced challenges in recent years, delivered results that exceeded market expectations.
In the first quarter, Kohl's reported net sales of $3 billion, marking a 1.7% decrease year over year. The company's net loss narrowed to $14 million, or $0.13 per share, an improvement from the previous year's $15 million loss. Both sales and loss figures surpassed analyst consensus.
Management expressed satisfaction with the company's performance, highlighting progressive improvements driven by key initiatives. Reductions in expenses, cleaner inventories, and a strengthened balance sheet were also noted as positive developments.
Looking ahead, Kohl's reiterated its guidance for fiscal year 2026. The company anticipates net and comparable sales to be flat to 2% lower compared to 2025. Adjusted net income is projected to range between $1 and $1.60 per share, a forecast that aligns with analyst expectations.
