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📂 Category: Company News,News
💡 Here’s what you’ll learn:
Key takeaways
- Kohl’s shares reached their highest point since July 2024 on Tuesday after the retailer’s third-quarter results beat estimates.
- The results come one day after Kohl announced that interim CEO Michael Bender was officially its permanent CEO, following the firing of former CEO Ashley Buchanan for cause earlier this year.
Kohl’s (KSS) shares rose Tuesday after the retailer reported surprise earnings and better-than-expected sales, a day after removing the “interim” tag from CEO Michael Bender’s title.
The company said Tuesday that it earned an adjusted $0.10 per share, much higher than the adjusted loss of $0.19 per share that analysts had expected, according to estimates compiled by Visible Alpha. Revenue was $3.58 billion and comparable store sales were down 1.7% from the same time last year, both better than Wall Street expected.
The stock rose 43% to end the session at $22.42, its highest level since July 2024. This is the second time this year that Kohl’s shares have gained about 40% in a single trading session. When this last happened in July, the stock appeared to have become the latest play, as the rally came in the absence of any news.
Why is this important to investors?
Former Kohl’s CEO Ashley Buchanan unveiled a turnaround plan early in his tenure that focused on refocusing the retailer’s efforts on product categories it knew consumers loved and emphasizing its role as a value destination. However, Buchanan was fired a few months after taking office, leaving Bender as interim CEO to continue implementing the plan.
“These results are a direct reflection of the progress we are making in our 2025 initiatives, strengthening our confidence as we continue to move in the right direction,” Bandar said.
Bender officially became permanent CEO on Monday, after serving as interim CEO since the beginning of May, when previous CEO Ashley Buchanan was sacked. Just a few months after taking office, Buchanan was fired for cause over allegations that he improperly transferred business to a vendor that included a personal connection.
Kohl’s has had some success in its turnaround plan, focusing on catering to customers looking for things like jewelry and private-label products, as it also beat estimates last quarter.
With today’s massive gains, Kohl’s shares are up 60% since the beginning of the year, far outperforming major retail stocks and the benchmark S&P 500 Index.
🔥 What do you think?
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