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Kohl’s Stock Surges After Reddit-Fueled Short Squeeze

Analysts warn the hype-driven rally may reverse sharply given Kohl’s unchanged weak sales paired with leadership turnover.

FILE - The Krispy Kreme logo appears above its trading post on the floor of the New York Stock Exchange, Monday, May 9, 2016. (AP Photo/Richard Drew, File)
In this photo illustration, the logo of Kohl's Corporation is displayed on a smartphone screen, with a stock market chart of the company in the background.
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Overview

  • Kohl’s shares jumped over 30% in mid-morning trade on July 22, prompting a New York Stock Exchange volatility halt and closing about 37% higher.
  • Retail investors on Reddit’s WallStreetBets coordinated buying to pressure short sellers facing Kohl’s roughly 49% short float.
  • The surge occurred without any new corporate announcements or imminent earnings, underscoring a disconnect from Kohl’s stagnant business outlook.
  • The company reported a 4.1% decline in Q1 same-store sales and replaced CEO Ashley Buchanan in May after an ethics breach, installing Michael Bender as interim chief.
  • The rally is the latest in a summer revival of meme stocks, mirroring earlier spikes in Opendoor and evoking the GameStop and AMC episodes of 2021.