Kohl's Corporation (KSS) stock soared 6.22% during Tuesday's intraday trading session, reversing earlier declines. The sharp upward movement follows the company's release of its fourth-quarter fiscal 2025 financial results.

The rally appears driven by a better-than-expected bottom line, as the company reported adjusted earnings per share of $0.95, surpassing the analyst consensus estimate of $0.85. Unadjusted EPS came in at $1.07. Despite a 3.9% year-over-year decline in net sales to $4.97 billion, which slightly missed expectations, investors focused on significant improvements in profitability and cost control.

Key positive drivers included a rise in operating income to $212 million from $126 million in the prior-year period, a 25 basis point improvement in gross margin to 33.1%, and a 4.9% decrease in selling, general and administrative expenses. Furthermore, inventory was reduced by 7% year-over-year, aiding cash flow. While the company provided a cautious sales outlook for fiscal 2026, projecting net and comparable sales to be flat to down 2%, the strong earnings performance and operational efficiency gains provided a catalyst for the stock's intraday surge.