Kohl's Corporation (KSS) shares skyrocketed 17.41% in pre-market trading on Thursday after the department store chain reported better-than-expected first-quarter results and reaffirmed its full-year outlook, despite ongoing challenges in the retail sector.
The company reported a narrower loss of $0.13 per share for the quarter ended May 3, compared to analysts' expectations of a $0.26 per share loss. Net sales came in at $3.05 billion, surpassing the Wall Street consensus of $3.02 billion. While comparable sales declined by 3.9%, this was still better than the projected 4.1% drop.
Investors were particularly encouraged by Kohl's decision to maintain its full-year 2025 financial outlook, projecting a net sales decrease of 5% to 7% and earnings in the range of $0.10 to $0.60 per share. This reaffirmation comes at a time when many retailers are cutting forecasts due to tariff uncertainties and shifting consumer demand patterns. The company's ability to navigate these challenges, coupled with its ongoing turnaround efforts and successful Sephora partnership, appears to have boosted investor confidence in Kohl's future prospects.
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