Kohl’s Stock Explodes 34% - Q3 Earnings Crush Expectations as New CEO Takes Helm

Retail giant Kohl's just delivered a blockbuster quarter that sent shockwaves through the market.

The Numbers Don't Lie

That 34% surge wasn't just market noise—it was investors voting with their wallets after seeing concrete results. Third-quarter performance smashed through analyst projections, proving traditional retail still has fight left in it.

Leadership Catalyst

The newly appointed CEO immediately put their stamp on the organization. Strategic shifts implemented during the transition period clearly resonated with both customers and shareholders.

Market Implications

While legacy retailers celebrate, crypto purists might smirk—after all, a 34% pop feels almost quaint compared to digital assets' typical Tuesday. But for traditional finance? This kind of move gets portfolio managers genuinely excited.

The turnaround story isn't just alive—it's accelerating. Kohl's just reminded everyone that sometimes the best trades hide in plain sight.

TLDR:

• Kohl’s stock surges 34% after strong Q3 and CEO announcement.
• Q3 results show Kohl’s improved margins despite sales decline.
• New CEO Michael J. Bender aims to guide Kohl’s through tough retail times.
• Kohl’s Q3 cash flow turns positive, with a $124M gain.
• Kohl’s revises 2025 outlook, projecting sales decline but steady profitability.

Kohl’s Corporation (KSS) saw its stock price jump 34.27%, reaching $21.12, following the release of strong third-quarter results and the announcement of a new CEO.

Kohl’s Corporation, KSS

Despite a decline in net sales and comparable sales, the company exceeded expectations with improvements in gross margin and earnings. The results reflect progress in Kohl’s 2025 initiatives, fueling Optimism for future growth.

Solid Third-Quarter Performance Boosts Stock

Kohl’s reported a 2.8% decrease in net sales for the third quarter, amounting to $3.4 billion. Comparable sales dropped by 1.7%, yet the company showed resilience in key financial areas. Gross margin improved by 51 basis points, reaching 39.6%. Selling, general, and administrative (SG&A) expenses also fell by 2.1%, bringing operational efficiency into focus. The company reported operating income of $73 million, compared to $98 million last year. Adjusted operating income stood at $77 million, indicating Kohl’s ability to maintain profitability despite challenges.

Net income was $8 million, or $0.07 per diluted share, while adjusted net income came in at $11 million, or $0.10 per share. This was a decline from $22 million, or $0.20 per diluted share, in the same quarter last year. However, Kohl’s demonstrated strong cash FLOW generation with $124 million in cash flow from operating activities. This was a significant turnaround from a $195 million cash outflow during the same period in 2024. The company’s inventory decreased by 5% year-over-year, showing effective inventory management.

New CEO Appointment Marks a Strategic Shift

Kohl’s appointed Michael J. Bender as its new CEO, effective immediately. Bender had been serving as the interim CEO since May 1, 2025, and has been a board member since 2019. His appointment reflects Kohl’s commitment to stability and leadership as the company navigates through an uncertain macroeconomic landscape.

Bender expressed pride in the company’s progress, highlighting the strong discipline, solid cash Flow generation, and healthy balance sheet. “We are moving in the right direction,” he said, underscoring the importance of building on current momentum. His leadership is expected to guide Kohl’s through a challenging retail environment while focusing on quality products and customer experience.

Full-Year 2025 Outlook and Capital Allocation Plans

Kohl’s revised its full-year 2025 financial outlook, expecting a net sales decline of 3.5% to 4%. The company also projected comparable sales to decrease by 2.5% to 3%. Adjusted operating margin is expected to be between 3.1% and 3.2%, and adjusted diluted EPS is forecasted to range from $1.25 to $1.45. Kohl’s continues to focus on its strategic initiatives and plans for significant capital expenditures of $400 million.

The company declared a quarterly dividend of $0.125 per share, payable on December 24, 2025. Kohl’s outlook reflects a cautious yet optimistic approach to managing its financial health and ensuring long-term growth. With the new CEO at the helm, the company is well-positioned to achieve its targets, despite ongoing challenges in the retail sector.