Kohl’s stock surged more than 15% on Thursday after the retailer posted results that showed its sales trend is moving in the right direction.
The stock had been down over 35% this year heading into the print, so the market was ready for any good news.
Kohl’s reported a net loss of $14 million, or 13 cents per share, for the fiscal first quarter ended May 2. That beat analyst expectations of a 19-cent loss per share.
Interesting quarter from $KSS: Sales were still down y/y, but inventory fell 8%, margins improved slightly, and Kohl’s significantly reduced borrowings versus last year.. signs management is tightening operations aggressively. https://t.co/wKNBxR4qyF
— Schaeffer's Investment Research (@schaeffers) May 28, 2026
Revenue came in at $3 billion, down from $3.05 billion a year ago but just ahead of the $2.99 billion Wall Street was looking for.
Comparable sales fell 1.1% in the quarter. That’s still negative, but it’s a clear step up from the 2.8% drop reported in the prior quarter — and the best comparable sales result in over four years.
Net sales declined 1.7% year over year.
CEO Michael Bender called it a solid start to 2026. “Our key initiatives continue to drive progressive improvements to the business, resulting in our best comparable sales performance in over four years,” he said.
Bender also pointed to expense discipline, cleaner inventories, and an improved balance sheet as highlights from the quarter.
The retailer has been under pressure for some time, with falling sales and a tough consumer environment weighing on results.
That backdrop made the Q1 beat more welcome to investors who had been waiting for a sign that the turnaround was gaining traction.
Kohl’s kept its full-year outlook unchanged. The company expects net sales and comparable sales to land in a range of down 2% to flat for fiscal 2026.
Adjusted earnings per share guidance was reaffirmed at $1 to $1.60. The midpoint of that range sits at $1.30, just below the analyst consensus of $1.36.
The guidance hold is notable given the uncertain retail environment. Sticking with the full-year forecast after a better-than-expected Q1 suggests management has some confidence in its trajectory.
Kohl’s did not raise guidance, which may temper some of the enthusiasm, but holding the line was enough to move the stock sharply higher.
The premarket pop of around 10% extended to over 15% by market open, making it one of the stronger single-day moves for the stock in recent memory.
KSS had closed Wednesday down more than 35% year-to-date before the earnings release.
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