Kohl’s Shares Surge 23% on Narrower Q1 Loss and Reaffirmed 2026 Targets
KSS•Kohl’s shares rallied 23% after Q1 net loss narrowed to $14 million ($0.13/share) versus analysts’ $0.21 forecast, on net sales of $3.0 billion (down 1.7%) and comparable sales down 1.1%. CEO Michael Bender reaffirmed fiscal 2026 targets: flat to 2% net sales decline, adjusted EPS $1.00–$1.60, and a $0.125 dividend.
1. Q1 Financial Performance
For the quarter ended May 2, Kohl’s posted net sales of $3.0 billion, a 1.7% decline year over year, and comparable sales fell 1.1%. The company reported a net loss of $14 million, or $0.13 per diluted share, versus analysts’ expected $0.21 loss.
2. Share Price Reaction
Shares jumped more than 23% following the release of results as investors reacted to the smaller-than-expected loss and signs of stabilization in sales and inventory levels under the new leadership.
3. Turnaround Initiatives
Since his permanent appointment in November, CEO Michael Bender has cut underperforming styles, emphasized core basics, expanded jewelry and accessories offerings, and deepened the Sephora partnership to attract younger demographics while retaining existing customers.
4. Outlook and Dividend
Kohl’s reaffirmed its fiscal 2026 outlook, projecting net sales flat to a 2% decline and adjusted diluted EPS between $1.00 and $1.60. The board also declared a quarterly dividend of $0.125 per share, payable June 24 to shareholders of record on June 10.
