Shares jump 15%
Analysts welcome forecast retention
Interim CEO says will stick to former chief’s turnaround plan
(Adds comments from conference call throughout, adds analyst comment in paragraph 5, updates shares)
By Juveria Tabassum
May 29 (Reuters) – Kohl’s retained its annual targets and reported better-than-expected quarterly results as the U.S. department store chain bets on its turnaround against the backdrop of tariff-induced uncertainty, pushing its shares up 15% on Thursday.
The company, which fired its CEO earlier this month for a personal relationship with a vendor, reported a loss per share of 13 cents for the first quarter, compared with estimates of a loss of 26 cents, according to data compiled by LSEG.
Kohl’s maintained its 2025 sales forecast of a 5% to 7% fall and earnings per share estimates of 10 cents to 60 cents. In contrast, larger rival Macy’s cut its annual profit forecast a day earlier but maintained its sales expectation.
“We think that within the guidance that we’ve given, we can manage through the tariff issue,” Kohl’s interim chief Michael Bender said on a post-earnings call.
Kohl’s maintaining forecasts was “an encouraging sign in the current environment,” Telsey Advisory Group analyst Dana Telsey said.
Analysts had expected Kohl’s to cut or withdraw its forecasts at a time when tariffs have forced several retailers to lower their financial targets.
Kohl’s, like Macy’s, is closing underperforming stores to focus on investing in outlets at prime locations and offering more of its private brands amid intense competition from off-price and online retailers.
The company does not expect major shifts away from the turnaround plan laid under former CEO Ashley Buchanan, video bokep Bender said.
Kohl’s partnership with Sephora has remained a bright spot due to resilient demand for higher-end beauty and skincare products. The company is leveraging that association and has completed the rollout of Sephora outlets in nearly all its 1,100 U.S. stores.
Kohl’s will provide coupons with more brands by mid-August to ensure consumers have more discount options heading into the back-to-school and holiday shopping seasons, CFO Jill Timm said.
“Kohl’s has a long road to turning the business around but it’s gratifying to see that the CEO turmoil didn’t drag down this quarter,” said Kim Forest, chief investment officer at Bokeh Capital Partners.
The company’s net sales for the three months ended May 3 were $3.05 billion, topping estimates of $3.02 billion. (Reporting by Juveria Tabassum in Bengaluru; Editing by Sriraj Kalluvila)
