Kohl’s Lifts Annual Outlook Again as Turnaround Momentum Builds; Shares Soar
A renewed turnaround strategy, stronger margins, and rising customer interest have helped Kohl’s raise its annual forecasts for the second time this year, sending its shares sharply higher.
Kohl’s has raised its full-year forecast once again, signalling growing confidence in the company’s turnaround strategy as it enters its first holiday season under newly appointed CEO Michael Bender.
The department-store chain projected a smaller annual sales decline and stronger profits, driving a major surge in its share price during early trading.
This back-to-back outlook upgrade marks another notable milestone in Kohl’s ongoing revival, a process that has accelerated since Bender first stepped into the role earlier this year.
The company has been reshaping its product mix, expanding the number of coupon-eligible items, and investing significantly in proprietary brands to appeal to value-driven shoppers in a highly competitive retail environment.
Shares of Kohl’s have more than doubled since May, benefiting both from leadership changes and a wave of renewed market enthusiasm that boosted several retail stocks earlier this year.
Shares of rival retailer Macy’s also saw gains during the session, reflecting broader investor optimism across the U.S. department-store sector as the holiday shopping period approaches.
Industry analysts noted that while the holiday season is still in its early stages, Kohl’s updated outlook suggests signs of stabilization in its operations and consumer response.
For fiscal 2025, the retailer now expects adjusted earnings between $1.25 and $1.45 per share, a substantial improvement over its earlier projection of $0.50 to $0.80 per share.
Kohl’s also anticipates a smaller decline in annual sales, forecasting a drop of 3.5% to 4%, compared with its previous estimate of a 5% to 6% decrease.
The company’s strategy has included restoring and expanding categories that had been scaled back in past merchandise resets,
such as fine jewelry and accessories, two segments that resonate strongly with its loyal customer base.
To attract younger shoppers, Kohl’s has strengthened partnerships with major beauty brands through its store-within-a-store model,
including its continued collaboration with Sephora, which features popular labels like Rare Beauty, Miu Miu, and Kerastase.
These partnerships have been key to drawing in a broader demographic, helping the retailer compete more effectively in the mid-tier department-store space.
Kohl’s reported an unexpected adjusted profit of $0.10 per share for the third quarter ended November 1, a notable beat compared to market expectations of a $0.20 loss.
Its quarterly gross margin improved by 51 basis points to 39.6%, supported by strategic cost controls and disciplined inventory management.
Over the past year, the company has emphasized operational efficiency through multiple measures, including reducing inventory, closing underperforming stores, and cutting corporate roles.
These actions have helped protect margins during a period of increased promotional activity and investment, creating more room for the company to strengthen its competitive position heading into the holiday shopping season.
Quarterly revenue reached $3.41 billion, exceeding analyst expectations and adding to the momentum behind the retailer’s improving performance.
With the holiday period underway, Kohl’s leadership believes its refined product assortment, stronger brand partnerships, and focus on value will continue to support demand, even amid cautious consumer spending trends.
As the turnaround progresses, the company’s updated guidance and operational gains provide a clearer view of its near-term trajectory,
suggesting that its efforts to stabilize and rebuild the business are starting to take firm hold.
