Key Highlights
- Kohl’s shares skyrocketed more than 15% Thursday following the retailer’s strongest comparable sales showing since 2022
- Q1 comparable sales declined just 1.1%, marking a significant improvement from the previous quarter’s 2.8% drop
- The company reported a loss of 13 cents per share, outperforming analyst projections of a 19-cent loss
- First-quarter revenue reached $3 billion, edging past Wall Street’s $2.99 billion forecast
- The department store chain maintained its fiscal 2026 guidance, projecting net sales ranging from a 2% decline to flat growth
Shares of Kohl’s experienced a dramatic rally Thursday, climbing more than 15% after the department store chain delivered quarterly results indicating meaningful sales momentum.
The retailer’s shares had tumbled over 35% year-to-date before the earnings announcement, positioning investors to embrace any positive developments.
For the fiscal first quarter ending May 2, Kohl’s posted a net loss of $14 million, translating to 13 cents per share. This figure surpassed Wall Street’s consensus estimate calling for a 19-cent per share loss.
Quarterly revenue totaled $3 billion, representing a decline from the prior year’s $3.05 billion but narrowly exceeding analyst expectations of $2.99 billion.
The company’s comparable sales dropped 1.1% during the period. While still in negative territory, this represents substantial improvement over the prior quarter’s 2.8% decline and marks the retailer’s strongest comparable sales performance in more than four years.
Total net sales decreased 1.7% on a year-over-year basis.
Improving Sales Momentum Signals Progress
CEO Michael Bender characterized the quarter as a promising beginning to fiscal 2026. “Our strategic initiatives are driving steady improvements across the business, delivering our strongest comparable sales result in over four years,” he stated.
Bender highlighted additional positive factors including disciplined expense management, improved inventory levels, and a strengthened balance sheet.
The retailer has faced persistent challenges recently, grappling with declining sales and difficult consumer spending conditions that have pressured financial performance.
This challenging environment made the first-quarter outperformance particularly meaningful for investors who had been seeking evidence that the company’s transformation efforts were bearing fruit.
Fiscal Year Outlook Remains Unchanged
Kohl’s maintained its fiscal 2026 full-year projections without revision. Management continues to anticipate net sales and comparable sales finishing between down 2% and flat for the year.
The company also reaffirmed its adjusted earnings per share guidance of $1 to $1.60. The $1.30 midpoint falls slightly below the $1.36 analyst consensus estimate.
The decision to maintain guidance is significant considering the volatile retail landscape. By keeping full-year projections intact following a better-than-anticipated first quarter, leadership appears confident in the company’s forward trajectory.
While Kohl’s stopped short of raising its outlook—which might have dampened some investor excitement—simply reaffirming guidance proved sufficient to drive substantial share price appreciation.
The stock’s premarket gain of approximately 10% expanded beyond 15% following the market open, representing one of the most significant single-session advances for KSS in recent times.
Prior to the earnings release, shares had closed Wednesday trading session down more than 35% for the year.
