Kohl's (NYSE:KSS) Shares Gap Up After Strong Earnings

Key Points

• Kohl’s shares jumped after the company reported quarterly results that beat expectations, opening well above the previous close following the earnings announcement.
• The retailer posted a smaller-than-expected loss of $0.13 per share and revenue of $3.17 billion, both better than Wall Street estimates.
• Investors also took note of signs of improvement, including Kohl’s strongest comparable sales growth in four years and its decision to reaffirm annual targets, though sales were still down year over year.

Kohl's Corporation (NYSE:KSS - Get Free Report) gapped up prior to trading on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $12.93, but opened at $15.51. Kohl's shares last traded at $14.9240, with a volume of 3,942,921 shares traded.

The company reported ($0.13) earnings per share for the quarter, topping analysts' consensus estimates of ($0.18) by $0.05. The firm had revenue of $3.17 billion for the quarter, compared to analysts' expectations of $2.99 billion. Kohl's had a return on equity of 4.72% and a net margin of 1.75%.Kohl's's revenue was down 1.7% on a year-over-year basis. During the same quarter last year, the business posted ($0.13) EPS.

Kohl's Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, June 24th. Shareholders of record on Wednesday, June 10th will be given a dividend of $0.125 per share. This represents a $0.50 annualized dividend and a yield of 3.3%. The ex-dividend date is Wednesday, June 10th. Kohl's's payout ratio is presently 21.19%.

Key Kohl's News

Here are the key news stories impacting Kohl's this week:

• Positive Sentiment: Kohl’s reported a smaller-than-expected quarterly loss of $0.13 per share, beating estimates of a $0.18 loss, while revenue of $3.17 billion also topped Wall Street’s forecast of $2.99 billion. Article Title
• Positive Sentiment: The company posted its strongest comparable sales growth in four years, which is a key sign that customer demand and merchandising efforts are improving. Article Title
• Positive Sentiment: Reuters reported that Kohl’s reaffirmed its annual targets, suggesting management still sees its cost-cutting and product expansion strategy working. Article Title
• Neutral Sentiment: Despite the upbeat earnings reaction, Kohl’s still said sales were down from a year ago and same-store sales remained under pressure, indicating the recovery is not yet complete. Article Title
• Negative Sentiment: Some coverage noted that fiscal 2026 profit guidance fell short of expectations, which could temper enthusiasm even after the strong quarter. Article Title

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on KSS shares. JPMorgan Chase & Co. reduced their price target on shares of Kohl's from $22.00 to $15.00 and set an "underweight" rating for the company in a research report on Tuesday, March 10th. Zacks Research raised shares of Kohl's from a "hold" rating to a "strong-buy" rating in a research report on Friday, May 15th. Jefferies Financial Group cut their target price on shares of Kohl's from $22.00 to $15.00 and set a "hold" rating for the company in a research report on Wednesday, March 11th. Bank of America decreased their target price on shares of Kohl's from $18.00 to $15.00 and set an "underperform" rating for the company in a research note on Thursday, March 12th. Finally, Citigroup lowered their price target on shares of Kohl's from $23.00 to $20.00 and set a "neutral" rating on the stock in a report on Thursday, February 19th. One investment analyst has rated the stock with a Strong Buy rating, nine have assigned a Hold rating and six have issued a Sell rating to the stock. According to data from MarketBeat.com, Kohl's presently has a consensus rating of "Reduce" and an average price target of $14.77.

Hedge Funds Weigh In On Kohl's

Hedge funds have recently added to or reduced their stakes in the company. Segall Bryant & Hamill LLC bought a new position in Kohl's during the first quarter valued at approximately $919,000. Kentucky Retirement Systems acquired a new stake in Kohl's in the first quarter valued at approximately $214,000. California State Teachers Retirement System grew its position in Kohl's by 24.3% in the first quarter. California State Teachers Retirement System now owns 131,975 shares of the company's stock worth $1,702,000 after acquiring an additional 25,811 shares in the last quarter. Royal Bank of Canada grew its position in Kohl's by 60.1% in the first quarter. Royal Bank of Canada now owns 159,401 shares of the company's stock worth $2,056,000 after acquiring an additional 59,833 shares in the last quarter. Finally, Empowered Funds LLC increased its stake in shares of Kohl's by 23.5% during the 1st quarter. Empowered Funds LLC now owns 666,072 shares of the company's stock worth $8,592,000 after purchasing an additional 126,550 shares during the last quarter. Institutional investors and hedge funds own 98.04% of the company's stock.

Kohl's Trading Up 18.8%

The company has a market cap of $1.72 billion, a price-to-earnings ratio of 6.54 and a beta of 1.46. The company's 50 day moving average price is $13.36 and its 200 day moving average price is $17.10. The company has a debt-to-equity ratio of 0.94, a quick ratio of 0.37 and a current ratio of 1.46.

Kohl's Company Profile

Kohl's Corporation, founded in 1962 by Maxwell Kohl and headquartered in Menomonee Falls, Wisconsin, is a leading American department store retailer. The company operates approximately 1,100 stores across 49 states, offering a combination of value-oriented pricing, private-label brands and national labels. Since its initial public offering in 1992, Kohl's has focused on broadening its product assortment and enhancing the in-store and online shopping experience.

The retailer's merchandise portfolio spans apparel, footwear, accessories, and beauty products for women, men and children, as well as home goods, kitchenware and seasonal décor.

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