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Kohl’s Posts Surprise Q3 Profit and Raises 2025 Guidance as Shares Soar

A surprise profit with a higher outlook signaled early traction in Kohl’s turnaround.

Overview

  • Kohl’s reported Q3 net sales of about $3.4 billion with comparable sales down 1.7%, net income of $8 million, and adjusted EPS of $0.10, topping expectations.
  • The retailer lifted full-year guidance to a 3.5%–4% net sales decline and adjusted EPS of $1.25–$1.45, and it now targets a 3.1%–3.2% adjusted operating margin.
  • Operational metrics improved as gross margin rose 51 basis points to 39.6%, inventory fell roughly 5%, and operating cash flow turned positive at $124 million.
  • The board named Michael J. Bender permanent CEO on Nov. 23, reinforcing a strategy focused on private labels, refined women’s assortments, jewelry, and expanded Sephora offerings.
  • Shares jumped roughly 25%–43% on Tuesday with high short interest contributing to a squeeze, even as executives and analysts cautioned that comparable sales remain negative and the multiyear revenue slide persists.