Kohl’s shares surge 20% on Q2 earnings beat

By InstinctBusiness Aug 27, 2025 0

Kohl’s shares soared over 20% after the retailer reported second-quarter earnings and revenue that exceeded Wall Street’s forecasts, despite a continued sales decline and an ongoing search for a new CEO.

The Wisconsin-based department store chain posted adjusted earnings of 56 cents per share, surpassing analysts’ expectations of 29 cents, and revenue of $3.35 billion, topping the anticipated $3.32 billion, according to LSEG.

For the quarter ending August 2, Kohl’s recorded a net income of $153 million, or $1.35 per share, a significant improvement from $66 million, or 59 cents per share, in the prior year’s quarter. However, net sales fell to $3.53 billion from $3.53 billion year-over-year, with comparable sales dropping 4.2%.

The retailer narrowed its full-year sales guidance to a decline of 5% to 6%, down from a prior range of 5% to 7%, and revised its adjusted earnings outlook to $0.50 to $0.80 per share.

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Amid these financial updates, Kohl’s navigates a turbulent leadership transition. The company has seen three CEOs in as many years, starting with Michelle Gass’s departure in late 2022 to join Levi Strauss. Tom Kingsbury, former Burlington Stores CEO, took over but will step down after two years.

Ashley Buchanan, appointed in November, was dismissed less than four months later following an investigation into vendor deals linked to his girlfriend. Michael Bender, a board member since 2019, now serves as interim CEO.

Despite challenges, Interim CEO Bender highlighted progress in a statement, noting reduced inventory (down 5% to $3 billion), lower expenses, and improved customer traction as part of Kohl’s 2025 initiatives.

The retailer has also revamped its strategy, expanding petites and fine jewelry, adding Sephora shops to all stores, and refining promotions to boost brand appeal. However, concerns linger as Kohl’s recently adjusted vendor payment terms to conserve cash, a move signaling potential financial strain.