Key Takeaways
- Kohl’s shares hit their highest point since July 2024 on Tuesday after the retailer’s third-quarter results topped estimates.
- The results come a day after Kohl’s said interim chief executive Michael Bender is officially its permanent CEO, after previous head executive Ashley Buchanan was fired for cause earlier this year.
Kohl’s (KSS) shares soared Tuesday after the retailer reported a surprise profit and better-than-expected sales, a day after removing the “interim” tag from CEO Michael Bender’s title.
The company said Tuesday it earned an adjusted $0.10 per share, well above the $0.19 adjusted loss per share that analysts had projected, according to estimates compiled by Visible Alpha. Revenue came in at $3.58 billion and comparable store sales fell 1.7% from the same time a year ago, each better than Wall Street had anticipated.
The stock gained 43% to finish the session at $22.42, its highest level since July 2024. This marked the second time this year that Kohl’s shares gained about 40% in a single trading session. When it last happened in July, the stock seemed to have become the latest meme play, as that surge came in the absence of any news.
Why This Matters to Investors
Kohl’s previous CEO Ashley Buchanan unveiled a turnaround plan early in his tenure, focused on re-centering the retailer’s efforts on product categories that it knows consumers love, and emphasize its role as a value destination. However, Buchanan was fired just months into his tenure, leaving Bender as interim CEO to continue implementing the plan.
“These results are a direct reflection of the progress we are making against our 2025 initiatives, reinforcing our confidence as we continue to move in the right direction,” Bender said.
Bender officially became the permanent CEO Monday, after serving as the interim head executive since the start of May, when previous CEO Ashley Buchanan was fired. Just a few months into his tenure, Buchanan was dismissed for cause over allegations that he had improperly funneled business to a vendor that included a personal contact.
Kohl’s has had some success with its turnaround plan, focusing on catering to customers looking for things like jewelry and private label products, as it also topped estimates last quarter.
With today’s massive gain, Kohl’s shares are up 60% since the start of the year, far outpacing the performance of major retail sector stocks and the benchmark S&P 500 index.