Kohl's $KSS rises 20% as Q1 comp sales mark best trend in four years
Original: Kohl's stock spikes 20% as slumping retailer says sales trends are improving View original →
Kohl's $KSS rose 20% after Q1 FY2026 results showed a smaller comparable-sales decline and cleaner inventory. The company reported net sales of $3.0B for the quarter ended May 2, 2026, down 1.7% from a year earlier, while comparable sales decreased 1.1%.
The stock reaction was tied less to absolute growth than to trend improvement. Kohl's said the quarter represented its best comparable-sales performance in more than four years. Gross margin was 39.9%, up 4 basis points year over year, and SG&A expense fell 1.6% to $1.1B. Operating income was $46M, compared with $60M a year earlier.
The retailer reported a net loss of $14M, or $0.13 per diluted share, matching the prior-year per-share loss. Inventory was $2.9B, down 8% year over year. Operating cash flow was a use of $74M, while borrowings under the revolving credit facility were $0, down by $545M from a year earlier.
Management affirmed FY2026 guidance for net sales and comparable sales to range from a 2% decline to flat, adjusted operating margin of 2.8%-3.4%, adjusted diluted EPS of $1.00-$1.60, and capital expenditures of $350M-$400M. The board also declared a quarterly dividend of $0.125 per share, payable June 24, 2026.
The next test is whether traffic and conversion can keep the comparable-sales line near flat while the company protects inventory discipline and avoids margin pressure from promotions.
Not investment advice. Verify all figures with primary sources before acting.
Related Articles
Samsung Electronics (005930.KS) estimated Q2 operating profit at 89.4 trillion won, about 1,810% above last year and 6.2% above consensus, while revenue reached 171 trillion won. The stock still fell as much as 10% as investors questioned AI-memory margins after a 2026 rally.
Delta Air Lines beat Q2 estimates with adjusted EPS of $1.56 and roughly $17.7B of adjusted revenue, but fuel costs near $4.4B pressured the stock. The carrier kept full-year EPS guidance at $6.50-$7.50 and guided Q3 EPS to $2.00-$2.50.
IBM fell more than 20% after preliminary Q2 revenue of $17.2B and adjusted EPS of $2.93 missed FactSet expectations for $17.86B and $3.01. The warning makes the July 22 earnings call the next test for software, infrastructure, and AI spending exposure.