Kohl's (KSS) Stock Soars 15% on Strongest Comparable Sales in Four Years

Key Takeaways

Table of Contents

Kohl’s shares climbed more than 15% Thursday following the strongest comparable sales results in over four years
First-quarter comparable sales declined 1.1%, showing significant improvement from the previous quarter’s 2.8% drop
Adjusted loss per share of 13 cents exceeded analyst projections of a 19-cent loss
Quarterly revenue reached $3 billion, topping the consensus forecast of $2.99 billion
The retailer maintained its fiscal 2026 guidance, projecting net sales between down 2% and flat

Shares of Kohl’s skyrocketed more than 15% Thursday as the department store chain delivered quarterly results demonstrating meaningful sales momentum.

Kohl’s Corporation, KSS

With the stock already down more than 35% year-to-date prior to the earnings announcement, investors were eager for positive signals.

For the fiscal first quarter ending May 2, Kohl’s posted a net loss of $14 million, translating to a loss of 13 cents per share. This outperformed Wall Street’s consensus estimate calling for a 19-cent per share loss.

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

Quarterly revenue totaled $3 billion, representing a decline from last year’s $3.05 billion but slightly surpassing analyst expectations of $2.99 billion.

Comparable sales decreased 1.1% during the period. While still in negative territory, this represents substantial progress compared to the 2.8% decline recorded in the previous quarter — marking the company’s strongest comparable sales performance in more than four years.

Overall net sales fell 1.7% on a year-over-year basis.

Improving Sales Trajectory

Chief Executive Officer Michael Bender characterized the quarter as a promising start to fiscal 2026. “Our strategic initiatives are delivering incremental improvements across the business, yielding our strongest comparable sales performance in over four years,” he stated.

Bender also emphasized the company’s disciplined expense management, healthier inventory levels, and strengthened balance sheet as notable achievements during the period.

The department store chain has faced headwinds for an extended period, with declining sales and challenging consumer spending conditions impacting financial performance.

This challenging environment made the first-quarter beat particularly meaningful for shareholders who had been looking for evidence that the company’s turnaround strategy was yielding results.

Fiscal Year Outlook Unchanged

Kohl’s maintained its existing full-year guidance. Management continues to anticipate net sales and comparable sales ranging from down 2% to flat for fiscal year 2026.

The company also reaffirmed its adjusted earnings per share guidance of $1.00 to $1.60. The midpoint of $1.30 remains slightly below the analyst consensus estimate of $1.36.

Maintaining guidance is significant considering the volatile retail landscape. The decision to hold the full-year outlook following a stronger-than-anticipated first quarter indicates management’s measured confidence in the business trajectory.

While Kohl’s chose not to raise its guidance — which might have dampened some investor excitement — simply affirming the forecast proved sufficient to drive substantial share price appreciation.

The stock’s premarket gain of approximately 10% expanded to over 15% following the market open, representing one of the most significant single-day rallies for KSS in recent history.

Prior to the earnings release, shares had closed Wednesday with a year-to-date decline exceeding 35%.