Kohl's Stock Soars on Improved Sales Trends

• Kohl's posted a net loss of $14 million (13 cents per share) for Q1 but beat expectations with $3 billion in revenue versus $2.99 billion expected
• Comparable sales declined only 1.1%, marking the company's best performance in over four years and showing improvement in business trends
• The company reaffirmed full-year guidance of net sales ranging from down 2% to flat, despite the stock having fallen over 35% year-to-date through Wednesday's close

Kohl's Stock Soars on Improved Sales Trends - Summary

Stock Performance: Kohl's shares jumped over 8% in premarket trading Thursday following better-than-expected quarterly results, despite the stock declining more than 35% year-to-date through Wednesday's close.

Key Financial Results (Fiscal Q1 ended May 2):

• Revenue: $3 billion vs. $2.99 billion expected (beat)
• Net sales: decreased 1.7%
• Comparable sales: declined 1.1% (best performance in four years)
• Net loss: $14 million, or $0.13 per share (beat expectations)

Full-Year Outlook: Management reaffirmed guidance with net sales and comparable sales expected in a range of down 2% to flat, along with adjusted earnings projections.

Management Commentary: CEO Michael Bender expressed satisfaction with the start to 2026, highlighting that key initiatives are driving progressive business improvements. The company emphasized strong expense management, cleaner inventories, and an improved balance sheet position.

Context: The struggling retailer has faced declining sales amid macroeconomic pressures. Despite revenue declining year-over-year, the sequential improvement in comparable sales performance represents the company's strongest showing in over four years, suggesting potential stabilization.

Market Implications: The positive reaction reflects investor relief that Kohl's turnaround efforts may be gaining traction. The ability to beat expectations on both revenue and earnings while maintaining disciplined cost management demonstrates operational progress. However, continued sales declines indicate the retailer still faces headwinds in recapturing market share and returning to growth. The reaffirmed outlook suggests management confidence in sustaining recent momentum through the remainder of the fiscal year.