Kohl's Stock Soars on Sales Beat, Affirmed Outlook

Shares of Kohl’s Corp. jumped on Thursday after the discount department store chain delivered better-than-expected first-quarter revenue, a smaller-than-anticipated loss, and maintained its full-year forecast — all of which eased investor concerns about the potential effects of tariffs.

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In the three-month period ending May 3, Kohl’s reported net sales of $3.05 billion, representing a 4.1% decline compared to the same quarter last year. Despite the drop, this figure came in above Wall Street projections, with analysts surveyed by FactSet forecasting $3.02 billion in revenue. This marked a significant turnaround for the Menomonee Falls, Wisconsin-based retailer, as it broke a 13-quarter streak of missing revenue expectations.

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Comparable-store sales, which measure performance at stores open for at least a year, declined by 3.9%, but still came in better than analysts’ consensus expectation of a 4.1% drop, again compiled by FactSet. These figures indicate that while sales have decreased, they did so at a slower pace than feared.

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The strong quarterly performance prompted a surge in Kohl’s stock, with shares climbing 10.4% in morning trading, making it the stock’s most robust post-earnings rally since November 2021. The stock has been on a significant rebound, soaring 33.4% so far in May, which puts it on pace to end a seven-month losing streak and potentially log its best monthly performance since the record-setting 51.2% gain in November 2020.

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Kohl’s reported a net loss of $15 million, or 13 cents per share, narrowing from the $27 million loss, or 24 cents per share, recorded in the same period a year earlier. This figure also beat analyst expectations, which had projected a loss of 25 cents per share, signaling that the company is slowly improving its bottom line.

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Despite ongoing economic pressures and uncertainty stemming from tariffs, Kohl’s reaffirmed its full-year guidance. The company continues to expect a net sales decline of between 5% and 7%, and earnings per share in the range of 10 cents to 60 cents. This level of consistency reassured investors, especially at a time when several major retailers are revising their projections.

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Across the retail industry, companies are contending with the fallout from a wave of tariffs introduced under the Trump administration, which has complicated import strategies and affected profit margins.

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On Wednesday, Macy’s Inc. maintained its revenue forecast but lowered its earnings expectations, attributing the change in part to the effect of tariffs. Last week, Target Corp. also revised its full-year profit outlook, citing tariff-related uncertainty as a contributing factor. In contrast, Walmart Inc. has so far stood firm, maintaining its full-year guidance earlier this month.

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Kohl’s, however, has recently faced internal leadership turmoil. The company let go of Chief Executive Officer Ashley Buchanan after only 106 days in the position. In the aftermath, interim CEO Michael Bender commented on the quarterly results, stating that Kohl’s outperformed expectations in the first quarter and that the performance provides a solid foundation going forward.

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Despite the positive developments, Kohl’s shares are still down 42.3% in 2025, significantly underperforming the broader market. Over the same time frame, the S&P 500 index has gained 0.1%, highlighting the challenges Kohl’s has faced in retaining investor confidence. The sharp drop reflects broader concerns about the company’s strategy, leadership changes, and ability to navigate a difficult retail environment.

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Nevertheless, the recent quarterly results and stock surge suggest that investor sentiment may be shifting, at least temporarily. The fact that Kohl’s exceeded expectations on multiple fronts — from total revenue and same-store sales to its earnings loss — offers a hopeful sign for shareholders. Additionally, the decision to hold firm on full-year guidance demonstrates management’s confidence in weathering the current economic headwinds.

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In conclusion, Kohl’s first-quarter report brought a welcome reprieve for investors and market watchers alike. While sales and earnings are still under pressure, the better-than-expected performance — paired with a bold show of confidence through reaffirmed guidance — led to a significant uptick in stock price.

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Combined with its break from a multi-quarter trend of revenue shortfalls and its best market performance in years, Kohl’s appears to be cautiously turning a corner, even amid the broader uncertainty tied to tariffs and internal leadership changes.

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