Core Insights - Kohl's Corporation (KSS.US) has raised its full-year performance expectations, indicating that its transformation strategy is beginning to show positive results, leading to a significant increase in stock price [1] Financial Performance - The company now expects same-store sales to decline by less than 5%, an improvement from the previous estimate of a 6% decline. Net sales are projected to decrease by 5% to 6%, better than the earlier forecast of a 5% to 7% decline. The expected earnings per share for the year have been raised to between $0.50 and $0.80, compared to the previous range of $0.10 to $0.60 [1] - In the second quarter, net sales fell from $3.53 billion to $3.35 billion year-over-year but exceeded Wall Street's expectation of $3.32 billion. Adjusted earnings per share were $0.56, significantly higher than the market expectation of $0.29. Same-store sales declined by 4.2%, which was better than the analysts' forecast of a 5% decline [1][2] Strategic Initiatives - Recent initiatives focusing on premium jewelry and optimizing women's apparel have helped Kohl's regain consumer interest. Collaborations with brands like Sephora and Toys "R" Us have stimulated consumer spending and increased foot traffic [2] - The company has introduced more coupons for branded products to maintain loyalty among middle- and low-income customers amid inflationary pressures [2] Leadership and Management Changes - Kohl's has experienced significant leadership changes, with three CEOs in the past three years. The leadership turmoil began in late 2022 when former CEO Michelle Gass left for Levi's. Tom Kingsbury, the former CEO of Burlington Stores, took over but announced his departure after two years. Ashley Buchanan, who succeeded him, was dismissed within four months due to a conflict of interest involving a supplier [3] - Michael Bender, a board member since 2019, is currently serving as the interim CEO while the company searches for a new permanent leader [3] Financial Concerns - The company has extended payment terms with suppliers, a common retail strategy to manage cash flow. Although specific adjustments were not detailed, the company stated it regularly reviews operations for efficiency [4] - Kohl's currently has over $2 billion in debt, including $360 million in recently issued junk bonds intended to pay off debts maturing this year. However, the interim CEO noted that the better-than-expected performance indicates that the company's transformation strategy is gaining consumer acceptance [4] - Inventory levels have improved, with the end-of-quarter inventory reduced to $3 billion, a 5% decrease year-over-year [4]

Core Viewpoint - Kohl's has raised its annual profit forecast while undergoing a transformation to control costs and regain consumer interest during the critical holiday shopping season, resulting in a 15% increase in its stock price during pre-market trading [1] Financial Performance - Kohl's now expects annual earnings per share (EPS) to be between $0.50 and $0.80, compared to a previous forecast range of $0.10 to $0.60 [1] - The company reported a second-quarter adjusted EPS of $0.56, significantly exceeding market expectations of $0.29 [1] Operational Changes - Earlier this year, Kohl's closed an e-commerce fulfillment center in Ohio and scaled back its in-store jewelry business while reducing inventory of its private label products [1] - During the quarter ending August 2, same-store sales decreased by 4.2%, which was less than the market expectation of a 5% decline [1] Management Commentary - Michael Bender, the interim CEO of Kohl's, stated that the company successfully expanded gross margins, reduced inventory, and lowered expenses, leading to solid profitability in the second quarter [1]

Kohl’s offered a more optimistic view for full-year sales, a sign that the troubled retailer’s turnaround efforts are gaining traction https://t.co/CwVeQjnsu5 ...

Financial Performance - Net sales for Q2 2025 decreased by 5.1% year-over-year to $3.3 billion, with comparable sales down 4.2%[5] - Gross margin increased by 28 basis points to 39.9% of net sales[6] - Diluted earnings per share (EPS) for Q2 2025 was $1.35, compared to $0.59 in the prior year[6] - Operating income rose to $279 million, an increase of 343 basis points year-over-year, with an operating margin of 7.9%[6] - Net income for the six months ended August 2, 2025, increased to $139 million, compared to $39 million for the same period in 2024, representing a significant growth[19] Cash Flow and Liquidity - Operating cash flow improved to $598 million, up from $254 million in the prior year[6] - Net cash provided by operating activities rose to $506 million, up from $247 million year-over-year[19] - Cash and cash equivalents at the end of the period were $174 million, down from $231 million at the end of the previous year[19] - The company experienced a net increase in cash and cash equivalents of $40 million during the period, compared to an increase of $48 million in the previous year[19] Inventory and Assets - Inventory decreased by 5% year-over-year to $3.0 billion[6] - Total current assets decreased to $3,474 million from $3,713 million, primarily due to a reduction in merchandise inventories[19] - Total assets decreased to $13,391 million from $14,180 million, reflecting a decline in both current and long-term assets[19] Liabilities and Debt - Total current liabilities decreased to $2,548 million from $3,438 million, driven by a reduction in accounts payable and borrowings under the revolving credit facility[19] - Long-term debt increased to $1,520 million from $1,173 million, indicating a rise in financial leverage[19] Capital Expenditures and Dividends - Capital expenditures for 2025 are estimated at approximately $400 million[11] - A quarterly cash dividend of $0.125 per share was declared, payable on September 24, 2025[11] - Dividends paid decreased significantly to $28 million from $111 million, reflecting a change in capital allocation strategy[19] Outlook - The company raised its full-year 2025 financial outlook, expecting net sales to decrease between 5% and 6%[11] - Adjusted diluted EPS guidance for the full year is projected to be in the range of $0.50 to $0.80[11]

Core Viewpoint - Kohl's (KSS) is expected to report quarterly earnings of $0.33 per share, reflecting a 44.1% decline year-over-year, with revenues forecasted at $3.48 billion, a decrease of 6.9% compared to the previous year [1]. Earnings Projections - The consensus EPS estimate has been revised upward by 2.9% in the last 30 days, indicating analysts' reassessment of their initial estimates [1][2]. - Prior revisions to earnings projections are crucial for predicting investor behavior regarding the stock [2]. Revenue Estimates - Analysts predict 'Other revenue' to reach $180.61 million, down 12.8% year-over-year [4]. - Estimated 'Net Sales' are projected at $3.34 billion, indicating a decline of 5.3% from the previous year [4]. - 'Revenue Recognition- Accessories' is expected to be $699.10 million, showing a 5% increase from the prior-year quarter [4]. Segment Revenue Forecasts - 'Revenue Recognition- Children's' is estimated at $326.53 million, down 9% from the year-ago quarter [5]. - 'Revenue Recognition- Footwear' is projected at $259.36 million, reflecting a 19% decline year-over-year [5]. - 'Revenue Recognition- Men's' is expected to reach $725.15 million, indicating a 2% decrease from the previous year [5]. - 'Revenue Recognition- Women's' is forecasted at $950.37 million, down 5.3% year-over-year [6]. - 'Revenue Recognition- Home' is estimated at $421.80 million, showing a 3.3% decline from the prior year [6]. Store Metrics - The consensus estimate for the total number of stores stands at 1,153, compared to 1,100 a year ago [6]. Stock Performance - Kohl's shares have returned -2.3% over the past month, contrasting with the Zacks S&P 500 composite's +1.1% change [6].

Core Viewpoint - Kohl's Corporation is expected to report declines in both revenue and earnings for the second quarter of fiscal 2025, with sales estimated at $3.48 billion, reflecting a 6.9% decrease year-over-year, and earnings per share projected at 33 cents, down 44.1% from the previous year [1]. Group 1: Earnings Performance - The Zacks Consensus Estimate for Kohl's quarterly sales is currently pegged at $3.48 billion, indicating a 6.9% decrease from the year-ago quarter [1]. - The consensus mark for earnings for the fiscal second quarter has remained stable at 33 cents a share, reflecting a year-over-year plunge of 44.1% [1]. - Kohl's has delivered an average earnings surprise of 18.8% over the trailing four quarters, with a notable earnings surprise of 40.9% in the last reported fiscal quarter [2]. Group 2: Factors Impacting Performance - Ongoing macroeconomic uncertainty and a cautious consumer environment are significant challenges for Kohl's, particularly affecting its digital business and home category sales [3]. - The company is facing external headwinds such as shifting consumer behavior and unpredictable tariff developments, leading to a projected comparable sales decline of 5.6% in the upcoming quarter [4]. - Despite these challenges, Kohl's has made progress in underpenetrated categories like home decor, gifting, and baby products, which may provide some cushion in the fiscal second quarter [5]. Group 3: Strategic Initiatives - Kohl's is focusing on strategic growth initiatives, including enhancing customer experience, optimizing inventory, and effective cost management, which is expected to result in a 6.1% reduction in SG&A costs for the second quarter [6]. - The strategic partnership with Sephora is anticipated to have a positive impact on performance in the upcoming quarter [5]. Group 4: Earnings Prediction Model - The current model does not predict an earnings beat for Kohl's, as it has an Earnings ESP of -20.17% and a Zacks Rank of 3, indicating a neutral outlook [7].

After winning the favor of retail investors, Kohl's has a chance to raise some much-needed cash, says @andreafelsted (via @opinion) https://t.co/tNWlyCEqSQ ...

Group 1 - The article discusses the emergence of a new class of meme stocks, including Kohl's, GoPro, and Krispy Kreme, which have experienced volatile trading reminiscent of the GameStop and AMC rallies in 2021 [1] - Meme stocks are characterized by sharp price swings not based on their underlying fundamentals, and they are typically considered cheap, with Kohl's share price down approximately 40% over the past year [1] - Recognition of these companies plays a crucial role in the spread of the meme narrative, making it easier for traders to rally around well-known brands compared to lesser-known stocks [2] Group 2 - A significant portion of the outstanding shares of these meme stocks are sold short, with approximately 47% of Kohl's, 28% of Krispy Kreme, and 9% of GoPro's shares being shorted [3] - The process of shorting involves investors borrowing shares and selling them, hoping to buy them back at a lower price to profit from the difference [3] - When the price of a heavily shorted stock rises, short sellers are forced to buy back shares to limit their losses, creating a feedback loop that can inflate the stock price [4][5]

Meme Stock Phenomenon - Meme stocks experience volatile price swings unrelated to business fundamentals, often involving heavily shorted, cheap stocks [4] - Retail investors leverage social media to drive up stock prices, challenging institutional investors [3][8] - GameStop's surge, fueled by Reddit users, demonstrated the potential for massive gains and losses, impacting hedge funds [9][10] - Kohl's, like other recognizable brands, became a target for meme stock activity due to its household name and high short interest [11][12] Kohl's Business Performance - Kohl's stock experienced a 100% surge due to meme stock activity, despite underlying business performance being just "okay" [1] - From July 2021 to July 2025, Kohl's stock price decreased by approximately 85% [17] - Between 2019 and 2024, beauty and accessory sales increased by 38% due to the Sephora partnership, but overall sales decreased by 18.5%, and excluding beauty, sales decreased by around 26% [19] - Kohl's has lost 1.3 million customers over five years to competitors [17] Risks and Outlook - Short selling involves borrowing and selling stock, hoping to buy it back at a lower price, but losses can be exponential if the price rises [5][6] - Wild stock swings can distract from Kohl's need to focus on day-to-day operations [21] - While not in immediate danger of bankruptcy, Kohl's faces challenges and needs to experiment with different strategies under an interim CEO [18][19][20] - Predicting the next meme stock is difficult, but companies with household names and high short interest are potential candidates [14][16]

Group 1 - The resurgence of meme stocks has created a dilemma for professional investors, weighing the option to capitalize on retail trading enthusiasm against the risk of a market bubble warning signal [1] - Stocks like Opendoor Technologies Inc. and Kohl's Corporation have seen significant price movements, with major indices like the S&P 500 and Nasdaq 100 reaching historical highs since early April [1] - FINRA data indicates that margin debt for purchasing stocks has surpassed levels seen during the tech bubble, reaching an all-time high [1] Group 2 - Signs of market fatigue are emerging, as the latest meme stock rally has shown a quick loss of momentum, with Bitcoin also retreating from its historical peak [3] - Some Wall Street trading desks are advising clients to purchase insurance at discounted prices to guard against potential losses, as current market valuations appear significantly high [3] - The S&P 500's expected price-to-earnings ratio is nearing 23 times, well above the 10-year average of approximately 18 times, indicating a substantial disconnect from fundamentals [3] Group 3 - The current speculative frenzy is reminiscent of the January 2021 meme stock surge, driven by retail investors using government stimulus checks and zero-commission trading platforms [7] - The trading volume for Opendoor reached 1.8 billion shares on its busiest day, accounting for nearly 10% of total U.S. stock market volume, highlighting the amplified speculative momentum [7] - The macroeconomic backdrop is different this time, with rising interest rates and expectations of potential Federal Reserve rate cuts later this year, which could further support the stock market [7] Group 4 - Current market conditions are still digesting the impacts of tariffs imposed by the Trump administration, but most trade agreements have yielded better-than-expected results since early April [7] - Inflation appears to be under control, and earnings growth remains stable, which could provide a foundation for continued market performance [7] - If the Federal Reserve does not cut rates this year or if tariffs and inflation undermine other positive factors, the market may face a reassessment [7]