Investors flock to Kohl’s amid signs of improvement

Kohl’s is finally handing investors a return that isn’t store credit. The company’s shares rose ~20% yesterday, in reaction to a better-than-expected quarterly earnings report that showed the retailer is trending upwards.

How we got here: The store where clearance racks stretch longer than TSA lines is trying to reverse a yearslong decrease in sales and chart a new course after the May firing of then-CEO Ashley Buchanan—Kohl’s third leader in three years—for funneling business to a romantic partner. The retailer still has yet to name a permanent chief to succeed him.

• Overall, Kohl’s stock is down ~75% compared to recent highs in 2022.
• Shares have risen over 150% since April, however, in large part due to the company becoming the beneficiary of meme-stock attention on social media.

Kohl’s latest earnings added more fuel to the rocket. The company beat analysts’ expectations by a significant margin on earnings, and slightly on revenue. Kohl’s comparable sales fell 4.2% last quarter, better than the 5.1% drop expected by analysts, while the company also raised its lower-end guidance for the year (from a 6% sales drop to 5%).

It wasn’t the only retailer that experienced a surprise stock boost: Shares of American Eagle closed up ~9% yesterday, after the denim-maker announced a limited-edition collaboration with Tru Kolors, a sportswear and lifestyle clothing line created by Travis Kelce Taylor Swift’s fiancé.