Kohl's Shares Rise 15% on Narrower First Quarter Loss
Kohl's posted a smaller first quarter loss as turnaround efforts stabilize sales. The retailer kept annual targets despite a 1.7% dip in quarterly sales.
Kohl's shares rose 15% in morning trading after reporting a narrower-than-expected first-quarter loss of 13 cents per share. The retailer maintained its annual guidance despite a 1.7% slide in net sales to $3 billion during the quarter. Investors are betting on CEO Michael Bender's turnaround strategy as comparable sales reached a four-year performance peak.
Kohl's shares had declined 37% year-to-date through Wednesday before the 15% jump, underscoring investor relief at signs of stabilization. The company's $14 million net loss for the period ending May 2 narrowed from a $15 million loss a year ago, beating analyst expectations of a 19-cent loss per share. This recovery matters because it signals Bender's cost-cutting and brand-expansion efforts are beginning to gain traction.
