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August 27, 2025
KSS Stock Quote: Kohl’s shares surged more than 20% on Wednesday. The jump came after the company beat Wall Street’s expectations for second-quarter earnings and revenue. Still, overall sales fell, and the retailer continues its search for a new CEO.
The department store, based in Wisconsin, also adjusted its outlook for the year. It now expects sales to decline by 5% to 6%. That’s a slight improvement from its earlier forecast of a 5% to 7% drop.
Kohl’s updated its full-year earnings outlook. The retailer now expects adjusted earnings between 50 and 80 cents per share. Its earlier forecast called for 10 to 60 cents per share, but those numbers were not adjusted.
On the earnings call, interim CEO Michael Bender pointed to economic pressures. He explained that many lower- and middle-income shoppers are moving toward more affordable brands.
Bender admitted Kohl’s has stumbled but said the company is taking steps to recover. The petite section, once removed, is being brought back. Jewelry has also returned after being cut to make space for Sephora shops.
Kohl’s is leaning on exclusive labels, with a stronger push toward affordable options. It is also reworking its discount system so coupons apply to more brands.
Even so, Bender did not give a timeline for when sales will grow again. He stressed that every effort is focused on bringing back customers who have stopped shopping at Kohl’s or who now spend less.
“Our way back to long-term success is simple—we have to return to growth,” he said. “Every move we’ve made is aimed at that goal.”
Kohl’s performance for the quarter ending Aug. 2 beat Wall Street’s estimates. Adjusted earnings landed at 56 cents per share. Analysts surveyed by LSEG had expected just 29 cents. Revenue reached $3.35 billion, edging past the $3.32 billion forecast.
In the second quarter, Kohl’s posted net income of $153 million. That worked out to $1.35 per share, compared with $66 million, or 59 cents per share, a year earlier.
When one-time items were factored out — including store closure costs and a legal settlement gain — earnings came to 56 cents per share. Net sales slipped to $3.35 billion, down from $3.53 billion in the same period last year.
Kohl’s is facing pressure on both sales and its stock. Ongoing leadership changes have made its turnaround even harder.
The retailer’s revenue has fallen for three consecutive years. Its market value has dropped from nearly $7 billion at the end of 2021 to about $1.5 billion today. Over that same period, three different chief executives have come and gone.
Kohl’s leadership changes began in late 2022, when CEO Michelle Gass departed to join Levi Strauss as president and later its chief executive.
She was followed by Tom Kingsbury, a board member at Kohl’s and the former head of Burlington Stores. In November, the company announced that Kingsbury would leave after two years in the role. His successor will be Ashley Buchanan, then CEO of Michaels and a seasoned executive from Walmart and Sam’s Club.
Buchanan’s tenure as CEO ended almost as quickly as it began. Fewer than four months into the role, he was ousted after an investigation found he had pushed for deals with a vendor connected to his girlfriend.
Kohl’s then appointed Michael Bender, a board member since 2019, to serve as interim CEO.
Signs of financial strain have also emerged. The retailer recently revised its payment terms with vendors, a step companies often take to delay payouts and preserve cash.
Kohl’s did not provide details about the changes in its statement. The company said it regularly reviews operations to ensure they run as effectively and efficiently as possible. It added that some vendors were told about the new payment terms back in March.
Sales kept falling in the second quarter. Comparable sales were down 4.2% from a year earlier. This measure strips out temporary factors such as store openings and closures.
Bender pointed to the second-quarter results as a sign of progress. He noted that Kohl’s trimmed inventory, cut costs, and built stronger momentum with shoppers.
Inventory ended the quarter at $3 billion, a 5% decline from the year before.
Sales trends also picked up as the quarter went on. May was the slowest month. June showed improvement. July was the best of the three, with comparable sales matching last year’s performance.
Men’s and kids’ apparel were the weakest categories of the quarter. Shoppers bought fewer spring basics such as T-shirts and shorts.
In contrast, dresses, kids’ footwear, home décor, and Kohl’s budget-friendly exclusive brands performed better.
Bender said the retailer is working to strike a stronger balance. The goal is to offer popular national labels alongside products available only at Kohl’s.
The company has launched three new exclusive home brands. This fall, it will also extend its FLX activewear line to kids, both online and in 300 stores. Bender added that Kohl’s private labels usually come at lower prices, which resonates with value-focused shoppers.
In the spring, Kohl’s completed the rollout of Sephora shops across all its stores. Bender said the addition has performed exactly as expected, attracting younger and first-time customers.
The retailer is also working to fix its lagging e-commerce business. This summer, it appointed two new leaders to drive the effort. Among them is Arianne Parisi, formerly the chief digital officer at JD Sports, who has taken on the same role at Kohl’s.
Kohl’s appointed Steven Dee as its new chief technology officer. He has previously led technology operations at Rodan + Fields, Nike, Hayneedle, and J.Crew. Dee steps in for Siobhán McFeeney, who exited the company in the spring.
During the quarter, digital sales outperformed store sales. Kohl’s said the lift came in part from allowing coupons to be used on more brands.
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