Kohl’s stock rises as Q1 results top estimates, guidance disappoints

Published 29/05/2025, 13:00
© Reuters.

Investing.com -- Kohl’s Corporation reported better-than-expected first quarter results on Thursday, despite a decline in sales, sending its shares up 3.7% in early trading.

The department store chain posted a loss of $0.13 per share for the quarter ended May 3, 2025, beating analyst estimates of a $0.47 loss. Revenue came in at $3 billion, slightly above the consensus estimate of $2.99 billion, but down 4.1% YoY. Comparable sales decreased 3.9% compared to the same period last year.

Despite the sales decline, Kohl’s (NYSE:KSS) saw improvements in profitability. Gross margin increased 37 basis points to 39.9%, while operating income rose to $60 million, up from $43 million in the prior year.

Interim CEO Michael Bender expressed optimism about the company’s progress, stating, "Our first quarter performance was ahead of our expectations and the actions we are taking are starting to make progress with early signs of a positive impact."

However, Kohl’s full-year earnings guidance disappointed investors. The company reaffirmed its outlook for fiscal 2025, expecting earnings per share between $0.10 and $0.60, below the analyst consensus of $0.67.

Kohl’s maintained its forecast for a 5% to 7% decrease in net sales and a 4% to 6% drop in comparable sales for the full year. The company also announced a quarterly dividend of $0.125 per share, payable on June 25, 2025.

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