Kohl's Shares Rise on Turnaround Plan and Profit Beat

Kohl's Corporation signaled a promising start to the 2026 fiscal year on Tuesday, reporting improvements in its apparel category despite a cautious full-year forecast. Shares of the department store operator rose approximately 8% in volatile trading as investors reacted to optimistic commentary from executives regarding the company's turnaround efforts. The retailer has faced a challenging environment in the United_States, where muted discretionary spending and previous merchandising errors have led to market share losses against competitors like Amazon.com, Inc. and Ross_Stores, Inc.. Chief Financial Officer Jill Timm noted that while the company is pleased with the initial performance in the first quarter, particularly in seasonal and year-round categories, the path ahead remains long. > We expect sales to build throughout the year and although we are pleased with our start to Q1, specifically in our spring seasonal and year-round businesses, theres a lot of quarters still ahead of us. Michael Bender, who was appointed permanent CEO in November, is leading a strategic reset to stabilize the business after years of declining sales. His approach focuses on streamlining inventory by cutting unproductive styles and prioritizing basic essentials that appeal to budget-conscious shoppers. > Our core low- to middle-income customers continue to face financial pressure and they are seeking value. For the full year, Kohl's expects sales to be flat to 2% lower, compared to analyst projections of a 0.7% decline. The company posted quarterly sales of $4.97 billion, falling short of the $5.03 billion estimate, but achieved an adjusted profit of $1.07 per share, which beat the 85-cent expectation. Analysts noted that while expense and inventory controls have bolstered the bottom line, the company's ability to maintain its market position remains the critical factor for its long-term success.