Kohl's Corporation (KSS) just had one of those quarters that makes Wall Street sit up and take notice. The department store retailer didn't just beat expectations—it demolished them, posting a profit where analysts had penciled in a loss and delivering revenue that topped forecasts by nearly $100 million.
For the third quarter of fiscal 2025, Kohl's reported adjusted earnings per share of 10 cents, easily surpassing the analyst consensus estimate of a 20-cent loss. That's a 30-cent swing in the positive direction. Quarterly revenue came in at $3.41 billion, up 2.8% year over year and ahead of the Street's $3.32 billion estimate. Comparable sales declined 1.7%, but in the context of the broader retail environment, that's relatively manageable.
CEO Michael J. Bender sounded appropriately pleased. "We are pleased with Kohl's third quarter results, marking a third consecutive quarter of delivering top-line and bottom-line performance ahead of our expectations," he said. "These results are a direct reflection of the progress we are making against our 2025 initiatives, reinforcing our confidence as we continue to move in the right direction."
The real headline came in the guidance. Kohl's raised its fiscal 2025 adjusted EPS guidance to $1.25-$1.45, up from the previous range of 50-80 cents. The consensus had been sitting at just 71 cents, so this represents a significant upgrade. The company expects net sales to decline between 3.5% and 4% for the full year.
On the leadership front, the company made it official: the board unanimously named Michael J. Bender as permanent CEO, effective November 23, 2025. He's been serving as interim CEO since May 1, 2025, and will continue to serve on the board.
Investors loved all of this. Kohl's shares gained 42.5% to close at $22.42 on Tuesday, a massive one-day move for a major retailer.
Wall Street analysts responded by raising their price targets:
- Evercore ISI Group analyst Michael Binetti maintained Kohl's with an In-Line rating and raised the price target from $13 to $21.
- Telsey Advisory Group analyst Dana Telsey maintained the stock with a Market Perform rating and raised the price target from $16 to $23.
Both analysts bumped their targets significantly higher, though they're keeping their ratings neutral for now. That makes sense—after a 42% single-day pop, there's probably less upside in the immediate term, even if the turnaround story is gaining credibility.
